Tuesday’s news was not good for homebuyers. The Case-Shiller index found new lows. In the 20 metro areas that the index measures the average home price fell by slightly less than 1% for the past three months.
The index has now reached levels not seen in the past ten years. The good news is that homes are dropping at a much slower rate than they were a year ago.
Winter is historically the ebb in home prices. This past winter was no exception. Atlanta led the way with new homes selling at more than a 1.8% discount over last year.
On the positive note, of the 20 areas in the survey half showed an increase in price. Some of the hardest hit areas for the past five years showed a small gain, led by Detroit and Phoenix.
Is this the time to get involved in the housing market again?
Big builders stocks have been rallying for months and if the current trend continues for the next couple of weeks they will be back to the highs before the great recession.
All markets represent opportunity and this housing market is no different.
To learn firsthand how I would trade a market that a rising housing prices could create, speak to one of my representatives and sign up to work one-on-one with me here:
Keep those stops tight.
Todd “Bubba” Horwitz
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