Analysis from Confounded Interest
CoreLogic released their monthly report this morning that showed that home prices in the U.S. decreased 0.4 percent on a month-over-month basis, the first monthly decline in four months. National home prices, including distressed sales, also declined on a year-over-year basis by 4.4 percent in August 2011 compared to August 2010. This follows a decline of 4.8 percent in July 2011 compared to July 2010. Excluding distressed sales, year-over-year prices declined by 0.7 percent in August 2011 compared to August 2010 and by 1.7 percent in July 2011 compared to July 2010.
As I discussed previously, the Fall/Winter seasonal effect has been strong in recent years and negative house prices followed consecutive months of home price increases.
While 0.4% sounds like a small number, on an annual basis it is -4.8%.
Once again, Operation Twist and low mortgage rates can only be effective in facilitating a housing rally if 1) consumers can get credit and 2) consumers feel positive about the state of the economy and housing market.
Link and graphs hereAnd today’s jobless claims number at 401,000 isn’t going to help