Tuesday, February 22, 2011

Misc: Shiller says house prices could fall 15% to 25%, Solid Manufacturing Survey, Libya Updates

by Bill McBride on 2/22/2011 01:45:00 PM

House prices:
• From David Streitfeld at the NY Times: Home Prices Slid in December in Most U.S. Cities, Index Shows

Mr. Shiller, noting the unrest in the Middle East, a large backlog of foreclosed houses, the uncertain future of the mortgage holding companies Fannie Mae and Freddie Mac, and proposals to reduce the mortgage tax deduction, saw “a substantial risk” of declines of “15 percent, 20 percent, 25 percent.”
Real House Prices fall to 2000 Levels, Update on NAR Overstating Sales
Case-Shiller: National Home Prices Are Close to the 2009Q1 Trough

Other U.S. economic news:
• From the Richmond Fed: Manufacturing Activity Advanced at a Healthy Pace in February
In February, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — rose seven points to 25 from January's reading of 18. ... The manufacturing employment index added two points to end at 16, and the average workweek measure moved up three points to 20. Moreover, wage growth gained five points to 18. ... District manufacturers reported that raw materials prices increased at an average annual rate of 4.72 percent
All good news except prices.
• From MarketWatch: Consumer confidence jumps in February
The gauge for consumer confidence rose to 70.4 in February from 64.8 in January.
Libya updates:
• From the NY Times: Chaos Grows in Libya as Strife in Tripoli Intensifies
Libya appeared to slip further into chaos on Tuesday, as Col. Muammar el-Qaddafi vowed “to fight to the last drop of blood” and clashes intensified between rebels and his loyalists in the capital, Tripoli. ... Witnesses described the streets of Tripoli as a war zone.
• The Telegraph blog that is updated frequently: Libya protests: live

• From al Jazeera: Libya Live Blog