Case-Shiller Index Nearly Flat in September

Standard & Poor's Case-Shiller Index was nearly flat in September, after large gains in July and August. While many analysts appear disappointed with the news, expecting a W in the trend, rather than the previously hoped for V, others are still excited. As Grant Stern, a mortgage loan officer in Florida, said, "Nobody expects a 50 percent gain. Flat is the new up." Still, with the Case-Shiller index covering a three month average, strong July and August numbers could mean that prices plummeted in September.

Regardless of how much the Index moved this past month, it is still nearly 10% below levels from a year ago and 29.1% below its height at the peak of the boom in 2006. Some of the hardest hit areas, such as Las Vegas, have seen prices down more than 50% since the peak of the boom. Prices in Las Vegas have declined for 37 straight months.

The sobering news about housing prices comes in spite of the strong existing home sales in October. It will be interesting if prices in October fall as well when the Case-Shiller Index is released for October next month. Yet, this seems like a definite possibility.