Home Price Index Continues its Decline

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Data released this morning shows that the selling price of homes continues to decline, as shown on the graph below. Since it's a "leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity," this only adds fuel to the unfolding story of slowing demand/growth in 2012.

Today's data confirms data released on February 23rd which also showed a decline in the purchase price of homes with mortgages backed by Fannie Mae and Freddie Mac, as outlined in my post of February 23rd. As you can see in that post, existing home sales also declined, according to data released on February 22nd…these sales are down at 2009 levels…not a healthy environment at the moment in the housing industry.