Battered Housing Market Is Recovering

The Case-Shiller Index was released on Tuesday.  It revealed only a 2.5% drop in home values, significantly better than the 8.7% drop reported after 2009 Q3.

According to Case-Shiller representatives, we’re seeing a healthier market than one year ago.  We’re also seeing that the market is returning to a normal healthy rate of recovery after last summer’s incredibly hot market.

Of note, 5 markets didn’t decline:  Detroit, Los Angeles, Las Vegas, Phoenix and San Diego.

They were the hardest hit in the beginning and are now showing the first signs of strength as the market returns.

The Case-Shiller Index isn’t without flaws.  For example:

1. The data is two months old
2. It is only 20 cities
3. Real estate is local, not national

Still, the index carries weight as the broadest private-sector index out there.  Housing is key to the economic recovery and we’re seeing good signs in housing.