Case Shiller - 10 & 20 City Composites

February's CS indices were released this week.  It appears that prices are finally starting to drop again.

 Volumes have dried up over the last year due to stagnant prices.  Last year's tax credits have only served to drag out the process.  Prices need to drop before a meaningful bottom can be found.

 The rate of change dropped below negative at the beginning of the year. 

On a fundamental basis, prices may not need to go too much lower.  Price to rent will hit the long term average at 1.0, not far from here.  To get there, home prices need to drop a bit further as rental rates creep higher.