By Dr Denver H. Bubble
The S&P/Case-Shiller 20-city index rose a seasonally adjusted 0.1% and was 5.5% higher compared to its level a year ago, the lowest annual increase in 20 months. Tuesday’s Case-Shiller report covers a three-month period ending in August. Nationally, August marked the fifth straight month of decelerating price gains, as interest rates have risen and inventory in some markets, especially in our home market of Denver, has been growing. Denver month over month was unchanged in terms of prices. Year over year prices were up 7.7%.
The Case-Shiller is a lagging market indicator, we already have data from September that sales of previously owned U.S. homes fell 3.4% from the previous month to a seasonally adjusted annual rate of 5.15 million, the National Association of Realtors said Friday. Residential sales from Denver were down almost 30%, well ahead of the national average. Fewer people are attending open houses and inventory levels are rising, prompting the perma-bull Lawrence Yun, the NAR’s chief economist, to acknowledge there has been a “clear shift” in the market. Given the trends from September, it will interesting to see the steep fall that is confirmed from the October numbers. This bubble is popping before our eyes.