Case-Shiller Housing Report (mostly)

The Federal Reserve Open Market Committee (FOMC) began a two day meeting today. The Case-Shiller housing report for February was released, a set of quarterly corporate earnings were reported and one round of Consumer Confidence numbers came out today. The housing report was more bad news while corporate earnings were good news.

The bond market is up cautiously at this hour (12:30PM EDT), the stock market averages are up nicely and crude oil is off a trifle. One supposes crude is responding to news across the oil-producing areas of the Mediterranean/Middle East where stalemate is the order of the day.

There are many ways to look at the housing numbers. One is a comparison with the 100% year which was 2000. Cities in which the price of housing is, according to the report, lower than it was 11 years ago are Cleveland, Las Vegas, Detroit and Atlanta with Phoenix prices less than 1% above those of 2000. What these cities seem to have in common is lack of a stable, middle class job market.

The cities that have had the greatest percent decline from the highest prices between 2000 and 2011 are Phoenix, Miami and Las Vegas, all dropping more than 50% from their highs.

Dallas and Denver had the least drop from their highs, losing 10% and 14% respectively. Dallas prices are up just under 14% and Denver prices are up 21% since 2000. The 20 city average for the same time period is up 39%.

The cities that experienced the largest interim price increase, by which I mean the highest average prices in the period between 2000 and 2011, were Miami at 281%, LA at 274%, DC at 251% and San Diego at 250%.

Finally, the big gainers, even though they provide some heart-stopping losses for anyone who bought at the peak, are: New York City, +65%; Boston, +50%; Washington DC, the clear winner at +81% (are corporate lobbyists and politicians paid more than they are worth to the society?); San Diego, +55%; and Los Angeles, +68%. It does seem to be all about where the jobs are, especially where the good paying jobs may be found.