With the S&P/Case-Shiller Index releas, everyone is aflutter with talk of a double-dip in house prices. Remain calm. These are January numbers. It's almost April. More recent figures exhibit more positivity for the 2011 housing market. Here's how --
Since 2008, as the active housing inventory (the number homes available for sale) rose more sharply, price gains were dampened. Makes sense, right? Price is the intersection of supply and demand. In 2011, we're past yesteryear's demand stimulus programs (i.e. tax credit), unemployment levels remain obstinate despite recent GDP growth, and homeownership rates are declining. Not much left to impact prices in the short run except supply.
Here's the good news for 2011 so far - despite inventory increases this Spring on par with 2008 and 2010, market prices are also rising. Measuring the slope of price and inventory changes in our Altos 20-City Composite over the last four Spring-time markets
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