Thursday, August 1, 2019

Case-Shiller Housing Trends: Cleveland vs. Detroit – Who Wins?

        -- Intended for New College Graduates --

(Click on the image to enlarge)


Detroit housing market made a tremendous comeback after the last recession when their property values took a nosedive. Between January, 2017 and April, 2019, Detroit registered a gain of 13.71% (0.51% monthly) while Cleveland lagged behind at 8.80% (0.33% monthly).

The top monthly graph shows Detroit home prices moved up at near-perfect 45 degree growth angle, whereas the Cleveland curve was much flatter.

Detroit also responded very positively to the recent decline in mortgage rates, while Cleveland remained almost unresponsive.

The scatter plot shows that the two markets, nonetheless, remained highly correlated during this period. Understandably, the geographic proximity tends to keep them economically closer together.

Detroit is the clear winner here and the slope of the curve points to continuing growth. 

Disclaimer - The author is not advocating the Case Shiller indices listed here. Consult your Financial Planner for an appropriate asset allocation model and/or trading strategies for different markets, including housing.

Thank you.

Sid Som, MBA, MIM
President, Homequant, Inc.
homequant@gmail.com

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