Wednesday, October 27, 2010

A Case Shiller Warning for Portland Prices

Well here's a real doozy from the Oregonian:

"The "ownership society" just ain't what it used to be. Investors watched their retirement savings brutalized not once but twice during the "lost decade" of 2000-2009. Now, Americans are watching the value of their home, which seemed last spring to be rallying, again in decline.

The Standard & Poor's Case Shiller Index fell broadly in August, including in Portland, according to just-released numbers. The index declined from the prior month in 17 of the 20 metropolitan areas tracked by the index.

In Portland, the index finished August at 147.02, down .9 percent from July and down 2.3 percent from a year ago. Home prices as of August were roughly equal to levels of 2003 and 2004, according to the report. "

Ooooohhhh Bother! The Oregonian seemed to have forgotten to print the left hand side of the price decline graph. Yep. Prices dropped and now they're stable, but where exactly did the left side of that graph go? What did PDX look like in the mid-late 90s? Y2K?!?

" "It's like a never-ending supply" of homes, said Daniel Alpert, managing partner at the New York investment bank Westwood Capital. He expects prices to fall another 10 percent over the next year -- and not improve much after that. "