What’s happening with prices right now is pretty simple to look at in this graph from Case‐Shiller. They shot up from June of 2012 to June of 2013; May of 2013. They shot up. We didn’t have any inventory. People were fighting over the houses. Prices skyrocketed. But now they’ve pretty much leveled off.
As a matter of fact, on another graph from CoreLogic we can take a look month over month what happened with prices. This is their December report which would cover November. We can see that in some states we have a positive change. But in a great number of states they’re pink. They have a negative meaning month over month prices actually went down. That’s nothing to be afraid of. Normally this time of year that’s exactly what happens. Prices start to level off. So as a country you could look at it state by state. We can understand that all right in most parts of the country prices are leveling, even slipping a little bit. That doesn’t mean we’re projecting depreciation going forward. We’re saying they couldn’t maintain the speed at which they were advancing. So month over month we’re going to look at for the next couple of months to make sure we see that during the winter months prices will stabilize.