Home Prices Plummet to 2003 Levels

Using data that tracks home prices through April of 2011, Case-Shiller, reported a slight bump in home values. However, hold off on popping the cork on the champagne. It’s far too early to tell if this reflects a sea change in the housing market or is simply a reflection of the spring/summer buying season.

According to Robert Shiller, an economics professor at Yale University and co-creator of Case-Shiller home price index, he has a “tinge of optimism” but doesn’t believe the crisis is over. He cites, the 1.8 million pending foreclosures slated to come to market, the debt ceiling crisis and continuing unemployment. Shiller believes the slight bump in housing for the month of April may simply be an anomaly and that there is too little data to believe this is the beginning of a turnaround.

Amazing, the power of the press. In the beginning of the foreclosure crisis, the press couldn’t stop beating the dead housing horse. Now, as we drift or in the words of Shiller continue “in the doldrums” the press seems to frantically be searching for a ray of hope.

Does the press think that the power of positive thinking can make all this housing misery disappear? If Robert Shiller doesn’t think so, then I think not.