Skip to comments.'Clear evidence' of a weakening in housing: Shiller
Posted on 07/29/2014 8:20:32 AM PDT by Citizen Zed
U.S. single-family home prices fell in May on a seasonally adjusted basis, falling short of expectations calling for a slight gain, a closely watched survey said on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.3 percent in May on a seasonally adjusted basis. A Reuters poll of economists forecast a gain of 0.2 percent.
Non-seasonally adjusted prices rose 1.1 percent in the 20 cities, compared to an expectation of a 1.5 percent rise.
"What I find particularly interesting is that on a seasonally-adjusted basis, nationally, home prices are falling only a smidgenthree-tenths of one percentbut the way these markets go, that could possibly be a turning point," Robert Shiller told CNBC in an interview on "Squawk on the Street."
With pending home sales and new home sales down, however, "there's some clear evidence of a weakening," he added.
(Excerpt) Read more at mob.cnbc.com ...
The majority of home sales were from big spenders like Warren Buffett and companies that could by thousands of homes at once. Fix then up then rent them out until they could sell at higher prices. The higher price has not happened yet so many rentals out there. The only good news is these companies will be burned. They raised the price of all other homes in the area thereby pricing people out looking to buy 1 home.
And from your article...."he suggested that perhaps rising geopolitical tensions around the world may be to blame" .... unfortunately, I gotta call BS, here. How many people would say "Gee, there's instability in Libya. No WAY I can buy a house, now."
It's too late in the year to blame the "bad" Winter on poor sales, so the nits in the newsroom latch onto the nearest bad thing happening currently as the "cause". It must be the Middle East, Crimea, Russia, whatever.
Those nice items and the fact that most home sales in many areas are all cash deals. Some areas it is 75% or more. That’s not typical home buyer rates.
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