The headlines say that home prices are down 6.7 percent from a year earlier. It’s important to recognize that this is a national figure.
“National” has nothing to do with real estate. Real estate is local.
The chart above is from the latest S&P/Case-Shiller home-price index and — averaged out — shows that home prices are declining nationwide. Some areas are showing growth (or flatness):
And, in every town included in the survey, there are neighborhoods that are faring quite well, despite an overall sluggishness.
Real estate prices are local. Street by street even. National surveys like the S&P/Case-Shiller home-price index paints a broad picture of our nation’s real estate market, but that level of reporting doesn’t do much on a level that’s actually relevant to Americans.
Pace of Decline In Home Prices Sets a Record
James R. Hagerty And Kelly Evans
The Wall Street Journal Online, December 27, 2007