The latest evidence suggests that prices have started to fall at a faster pace once again. After having dropped by 1.0% m/m in both December and January, prices on the seasonally adjusted FHFA index fell by 1.6% m/m in February. Admittedly, the Case-Shiller index has bucked this trend. But that's because it tends to lag the other indices. Indeed, the larger falls on the CoreLogic index suggest that the Case-Shiller index will soon drop at a faster rate. The sharper falls in prices appear to be due to an increase in the number of distressed sales. With many more homes in the foreclosure pipeline, prices will continue to fall throughout this year and perhaps into next year too.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services