Home prices fell in August, near lows: S&P

Sluggish to falling home prices are not keeping pace with the rate of currency devaluation. This underperformance is illustrated by a declining median home price to gold ratio. The chart reveals that the bounce within the steps is not only weakening but also shortening as the price of gold accelerates.

U.S. Median Home Price (MHP) to Gold:


Falling constant currency or “real” home prices means homebuilders struggle to remain profitable.

S&P Homebuilders (HB) to Gold Ratio:

Prices of single-family homes fell in August, hovering around recent lows after the expiration of popular homebuyer tax credits, according a Standard & Poor's/Case-Shiller home price report on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.3 percent in August from July on a seasonally adjusted basis, as expected in a Reuters poll. The dip followed a 0.6 percent July gain.

Source: finance.yahoo.com