Every month, Wellesley economics professor Karl Case and Yale economics professor Robert Shiller, put together a housing price index based on the home prices in 20 metropolitan areas, with a two month lag. The June numbers for the Case-Shiller home price index were just released, revealing that prices improved in 18 of 20 markets!
- San Francisco - Up 3.8%
- Boston - Up 2.6%
- Cleveland - Up 4.2%
- Phoenix - Up 1.1%
"A Big, Big Deal"
In the Spring economists expected housing prices to drop another 10%, resulting in more foreclosures, toxic assets, bank failures, etc. That's been averted.
The result, according to Dr Case, is that "banks will stabilize their balance sheets more quickly. The toxic paper will get written off more quickly. That’s a big, big deal."
Read More At The New York Times