Today’s Case-Shiller report is doom and gloom nationally, but there is a positive angle to the local numbers.
The Case-Shiller Composite-20 Index (i.e. the national sample) saw March home values drop 2.1% from the previous month, which is approximately the same monthly percentage decline as February. In Washington, however, the trend is encouraging as home values decrease only 1.2% from February, an improvement from last month which saw Washington home values lose 2.3% from the previous month.
This month-over-month improvement is the indicator that we have reached the bottom of the housing market.
Nationally, home values are on a rapid decline. However, the Washington metro area is seeing signs of stability and improvement. Washington is the strongest housing market in the nation and the current Case-Shiller numbers demonstrate that. I anticipate greater improvement in the coming months as we continue to work our way through our excess inventory. At that point, we may even begin to see some appreciating home values.
