Home price index negative for first time since ’94

“The S&P/Case-Shiller Metro Area Home Price Indices are designed to be a reliable and consistent benchmark of housing prices in the United States. Their purpose is to measure the average change in home prices in a particular geographic market. They cover ten major metropolitan areas (Metropolitan Statistical Areas or MSAs), which are also aggregated to form a national composite. The indices measure changes in housing market prices given a constant level of quality. Changes in the types and sizes of houses or changes in the physical characteristics of houses are specifically excluded from the calculations to avoid incorrectly affecting the index value.”

For young renters like myself, this data is bittersweet. Obviously a bad sign for the economy and my heart goes out to those loosing value in their homes…but the housing market is ridiculously overpriced and needs to come down. I don’t want to rent forever!