The Headlines Were Overly Rosy On February’s Case-Shiller Index
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Earlier this week, Standard & Poors released its February Case-Shiller Index, a home price tracker for select metropolitan areas. I w ill give you the numbers for Lake Geneva real estate and Walworth County further in this post.
Overwhelmingly, home values fell in the 20 markets tracked by the Case-Shiller. Only San Diego showed a modest increase. The other 19 markets averaged a 1.23 percent decline between January and February. The market for Walworth County and Lake Geneva real estate rose 12.5% from January to February 2010 in the total number of homes sold. As this number increases property values tend to increase as well.
However, that’s not the story you read in the most papers. Instead, headlines read that home values were up in the United States, citing annualized data.
Unfortunately for active home buyers and sellers, year-over-year data isn’t all that helpful when making a real estate decisions. It’s the month-to-month data that matters. Month-to-month changes in home prices are what defines a housing market. Month-to-month is what sets the tone for contracts and negotiations on a purchase.
The rosier, annualized data published this past week just doesn’t capture the reality of what was the February 2010 market. And even then, the data is somewhat useless because it’s from February and May will be upon us next week.
Case-Shiller is on a 2-month lag — hardly reflective of the “right now” of Lake Geneva real estate.
When you’re looking for real estate data that’s actionable, consider using sources that are more “real-time.” A Lake Geneva real estate agent may be the right place to start. Because for all the data that Case-Shiller and the other housing indices collect, it can never be as relevant to your individual needs as a well-executed, timely market analysis. I am fortunate to work with so many talented real estate agents. I would the opportunity to introduce you to one of them.
Travis K. Egan
As a Realtor in the Phoenix area i have just about quit reading any of the economic reports that come out.
the reason they are rarely reflective of what I see in the market on a daily basis. If I let the reports dictate how I view the market i do a disservice to my clients. But then thats just me
Ralph,
I agree. real estate is local. These reports are more designed to show an overall trend. They are hardly local. I find talking to real estate experts in local markets gives me far better insight than any of the national reports.
I appreciate you taking the time to comment. Come back often. I look forward to hearing your insights.
Warmly,
Travis
Lake Geneva Real Estate, Lender
Thanks for sharing the information. I found the info very helpful.
Emma,
I’m glad you liked it. Come back often.
Warmly,
Travis
Lake Geneva Real Estate, Lender
I have found this article extremely useful!