In order for the market to really find its footing, housing prices have to stabilize and bottom out. It doesn’t seem like that is happening quite yet as evidenced by data out today. The S&P/Case-Shiller index of 20 cities showed that home prices plunged 15.8% from last year in May. This was the biggest drop since the index started in 2000.

Things are especially bad in the Motor City. Housing values are actually lower now than they were in 2000! That is not a pretty picture. Consumers are not going to feel comfortable opening their wallets en masse until their biggest asset stops bleeding red ink. Keep an eye out for housing stabilization, but it just isn’t here yet.