There is an index of home prices called the S&P/Case-Shiller home-price index. It measures the prices of home in 20 large metropolitan areas around the country. It is considered a pretty accurate index of home price trends and it is definitely one that economists pay attention to when seeing what the housing market is doing.
Lately, it doesn’t look to good. After posting a year on year drop of 4.7% in September, the index saw a year on year drop of 6.1% in October. That’s decrease of 1.4% is the largest since the index began. This means that without a doubt, home prices are falling across the country. What happens next is what has the economists guessing.
