Obsolete Home Price Data Don’t Matter

Would you base any decision on three month old information? I doubt you would. So why should three month old data about home prices matter to the market? The S&P Case Shiller Home Price Index may have been useful three months ago, but today it’s just obsolete. There are other data points to look toward for a more relevant reporting of home prices. In this case, though, looking at just one month fresher information, we get the same message. Home prices are declining. However, I believe it is part of the healthy process of real estate market normalization, and not due to any economic or sector issue. I think that home prices are finding traction at a level from which they can rise at a sustainable and modest pace. See Is Obsolete Home Price Data Relevant? Article should interest SPDR Homebuilders (NYSE: XHB), Bank of America (NYSE: BAC), MGIC Investment (NYSE: MTG), Annaly Capital (NYSE: NLY) and more.