Home prices have reached new lows in Portland and Seattle. Nationally home prices are back to their first quarter of 2003 prices and approaching the lows of 2009. Only Washington DC and San Diego continue to show escalation in home prices, similar to last month. Again this seems to suggest that those markets where jobs are available is where housing will begin to recover.
A video with Professor Robert Shiller and David Blitzer S & P Index Committee Chairman discussing the December Case Shiller housing numbers. Blitzer states that we are not in a double dip, but “drifting along the bottom.” Professor Shiller doesn’t think it is a double dip because it hasn’t dipped below the 2009 lows. But he does think it is possible that housing prices will go down “substantially” in 2011. Blitzer goes on to comment that he things the home buying tax credit simply eroded naturally sales from the summer and fall and that may explain some of the continued reductions in home prices.