In the business section of the Trib today, they had a BizRoundup blurb that started off saying “In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record.”
The article then talks about the Case-Shiller index recently released that compares Feb 2009 vs. Feb 2008.
Ok, so a couple things came to mind when I read this. First, what other signs have I missed that show that the housing crisis is reaching bottom? Also, if home prices dropped sharply in February, how is this an indicator that the bottom may be near?
To me, there are many indicators that you have to look at to see what’s going on in the housing market including inventory levels and demand (supply and demand) and the amount of foreclosures which will continue to push prices down. Interest rates are another factor, especially if they start rising.