Crack is being smoked freely

[redrumloa]

http://finance.yahoo.com/news/Home-pric ... et=&ccode=

Prices inched up 0.6% in July compared with June, according to S&P/Case-Shiller 20-city home price index. On a year-over-year basis, prices rose 3.2% compared with July 2009.

This is some strong crack cocaine they are smoking. Prices rose 3.2% year over year :?:

:roflmao: :roflmao: :roflmao:

What has S&P/Case-Shiller been smoking? Obama and our esteemed gov need to look into this, at least we know they want the truth out there.

 

[redrumloa]

This explains a lot.

Why the Case Shiller Index, Although Showing Another Downturn Coming, is Overly Optimistic and Quite Misleading!
http://boombustblog.com/reggie-middleto ... #post-3338

Much of the foreclosure and distressed inventory came from investors who walked away from their investment when it became cash flow negative or sank underwater.

» Guess what? The CS index doesn’t capture investment properties, only owner occupied homes.
A significant amount of the distressed and foreclosed inventory also came in the form of multi-family housing where the owners overestimated the ability of rents to keep up with ARMS and then fell behind.

» Guess what? The CS index doesn’t capture multi-family housing, only single family detached/semi-detached housing.
Banks are dumping large amounts of foreclosed inventory on the market in the form of REOs which serves to depress pricing.

» Care to hazard a guess of whether banked-owned REOs are included in the Case Shiller index calcuation?
Many investors have started flipping lower end housing for quick gains (bought close to wholesale) to retail buyers. These deeds are often held for a matter of months, if that long.

» Guess what? The Case Shiller index has a minimum holding period to be included in the index which excludes practically all of these investor flips, which also tend to double count sales, when in reality only one real organic sale occurred.