NEW YORK (AP) -- A widely watched index released Tuesday showed home prices dropping by the sharpest rate ever in the second quarter, but the data for June suggest the severity of the housing slump may be waning. The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a record 15.4 percent during the quarter from the same period a year ago.
The monthly indices also clocked in record declines. The 20-city index fell by 15.9 percent in June compared with a year ago, the largest drop since its inception in 2000. The 10-city index plunged 17 percent, its biggest decline in its 21-year history. However, the rate of single-family home price declines slowed from May to June, a possible silver lining, the index creators said.
But I was told over and over that: Real estate never goes down. Real estate is the best investment anyone can make. Renting is throwing money away. How can this possibly be happening?
And what's this then? Yet another housing bottom is being predicted. I've lost count but I think since 2005 there have been about 156,288 predictions that the bottom is just around the corner. Here is the latest one:
Yep, now is a great time to buy. Better buy now or you will be priced out forever. Renting is....and so the spin begins again.
"While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level" said David M. Blitzer, chairman of the index committee at S&P.