Two things about Case-Shiller's information.
1. It is always two months old based on closed sales which are also two months behind the current market. So, figure 4 months stale.
2. In following the sale of the same house over time they don't, as far as I know take into account remodeling/deterioration. Back between 2002 and 2007 home improvement stores were booming because people were pouring money into their homes and re-tapping them for equity. Houses were getting improvements so the values should have gone up. Essentially they were not the same homes that sold two or three years earlier, even though they had the same address. And from 2007-present, most people stopped putting money into their homes and many of them have deteriorated, resulting in a home of less value. Same address, but now a fixer/shortsale/REO. Selling for less: No DUH!
Article #2. An enlightening article given by Froma Harrop datelined Providence. I'm assuming that's Rhode Island and not some ethereal point of wisdom. Her article is based on Zillow.com statistics which by Zillow's own admission have a median error of between 8.5 and 15.4%. Median would mean that half of the estimates are above and half below, so some can be pretty far off.
Ms Harrop continues her article in the political vein and advises elimination of any government incentives which encourage home ownership, citing Canada as a model. Harrop likes to write about everything from where ever her apartment is.
Her article is not in the online Times edition so I can't link to it. John Talton regurgitates the same Case-Shiller information as above in his piece about the American Dream. Apparently the Seattle Times can't afford local writers for most of their work and one would do just as well to read the pulp in USA Today. Or maybe local writers won't write articles with messages they are instructed to convey.
I'm glad to see the Times' prices rising. It will make it easier for me to stop the subscription come April 1st. No joke.
Also published at www.glennaroberts.com

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