Site Listing Service Blog

-PennyPic







DISCLAIMER ( PLEASE READ )


The disclaimer is to be read and fully understood before using our site, or joining our email list.
PLEASE NOTE WELL: The PennyPic.com employees are not Registered as an Investment Advisor in any jurisdiction whatsoever. Full disclaimer can be read at http://pennypic.com/ disclaimer.html


Release of Liability: Through use of this website viewing or using you agree to hold Pennypic.com, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data.
Please be advised that Pennypic.com is often compensated for issuing press release, profiles or opinions concerning particular companies. PennyPic received four hundred seventy five thousand dollars and signed a one year contract from a non affiliate third party white frog investments for online advertising and marketing of Alpha Trade. Its opinion is therefore not unbiased and you should consider this factor when evaluating pennypic.com`s statements regarding a company. Pennypic.com`s officers and directors reserve the right to buy additional shares of the company discussed in this opinion and may profit in the event those shares rise in value. When Pennypic.com receives free trading shares as compensation for a profiled company, Pennypic.com may sell part or all of any such shares during the period in which Pennypic.com is performing such services. Pennypic.com will also disclose any compensation.
Any opinions expressed are subject to change without notice.  Pennypic.com encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and Pennypic.com makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. Pennypic.com, nor any of its affiliates are not registered investment advisors or a broker dealers. Today’s release of the S&P/Case-Shiller (CSI) home price indices for May 2010 (browse the dashboard) reported that the non-seasonally adjusted Composite-10 price index increased 1.25% since April further indicating that the government's housing tax gimmick worked to lift prices into the expiration.

It's important to note that since the CSI data is a three month rolling average, it will take until the July reporting period (i.e. the September release) to get beyond tax stimulated home sales so it will take some time to see what the true "organic" (non-stimulated) housing trends look like.

The 10-city composite index increased 5.40% as compared to May 2009 while the 20-city composite increased 4.61% over the same period.

Topping the list of regional peak decliners was Las Vegas at -56.41%, Phoenix at -51.19%, Miami at -47.90%, Detroit at -46.25% and Tampa at -41.92%.

Additionally, both of the broad composite indices show significant peak declines slumping -29.58% for the 10-city national index and -29.10% for the 20-city national index on a peak comparison basis.

To better visualize today’s results use Blytic.com to view the full release.

Also, follow the S&P/Case-Shiller dashboard.

The following chart (click for larger version) shows the percent change to single family home prices given by the Case-Shiller Indices as compared to each metros respective price peak set between 2005 and 2007.

The following chart (click for larger version) shows the percent change to single family home prices given by the Case-Shiller Indices as on a year-over-year basis.

The following chart (click for larger version) shows the percent change to single family home prices given by the Case-Shiller Indices as on a month-to-month basis.

Additionally, in order to add some historical context to the perspective, I updated my “then and now” CSI charts that compare our current circumstances to the data seen during 90s housing decline.

To create the following annual charts I simply aligned the CSI data from the last month of positive year-over-year gains for both the current decline and the 90s housing bust and plotted the data with side-by-side columns (click for larger version).

What’s most interesting about this particular comparison is that it highlights both how young the current housing decline is and clearly shows that the latest bust has surpassed the prior bust in terms of intensity.

The “peak” chart compares the percentage change, comparing monthly CSI values to the peak value seen just prior to the first declining month all the way through the downturn and the full recovery of home prices.