Housing is still a mess - Part 2
A week ago I penned (can you really say penned if you aren't writing on a piece of paper, hmmmm) a post about how anyone who thinks that housing has bottomed is nuts: Housing is a mess: anecdotal & statistical evidence.
Additional statistical evidence that the fall in home prices is accelerating, not slowing was published this morning in the form of the Case-Shiller index. According to Case-Shiller, home prices fell in October at the fastest annual rate since the survey started 21 years ago. Specifically the 20-city index showed an 18% year-over-year decline in home prices and the 10-city index showed a 19.1% drop. Both indices have now fallen every single month for twenty-two straight. Ouch.
Home prices post 18 percent annual drop in October
I am sure that some will survive this ordeal and the ones that do will eventually emerge as strong companies with much less competition, but in my opinion now definitely is not the time to buy stock in home builders. If anything, I personally would rather still short them at this point.