Case-Shiller Home Price Index – Phoenix homes depreciate unexpectedly in January and February

(See recent posts on Phoenix Case-Shiller Home Price Index.)

I suppose we got a slump after the scheduled end of $8,000 first-time homebuyer tax credit last November. The program, however, was extended before it ended. (When looking at the cost (in)effectiveness of the program, we should take the post-program price slump into account.)

The program ended for good on April 30 so it will be interesting if we see a similar dip in May and June values. (I suspect the program “stole” from future sales and we will indeed see a dip in sales and values.)

Phoenix Homes Depreciate in January and February!

Greater Phoenix home prices appreciated 9% from June to December but then fell 2% from December to February, according to my analysis of Case-Shiller data.

The Case-Shiller Home Price Index for Phoenix is where it was in August 2001.

We have a time machine market. These prices are like going back in time.