This morning’s new home sales report and the FHFA House Price Index are confirming that housing is indeed double dipping. According to the latest new homes sales report median prices plunged -13.9% in October to $194,900. The average price fell -8% to $248,200. Supply of new homes rose sharply to 8.6 months.
The FHFA’s House Price Index fell -3.2% year over year in the third quarter:
“FHFA’s seasonally adjusted monthly index for September was down 0.7 per cent from its August value. The monthly increase for the July-to-August period was revised from an initial estimate of +0.4 per cent to 0.0 per cent (flat prices).
While the national, purchase-only house price index fell 3.2 per cent from the third quarter of 2009 to the third quarter of 2010, prices of other goods and services rose 2.0 per cent over the same period. Accordingly, the inflation-adjusted price of homes fell approximately 5.1 per cent over the latest year.”