Case-Shiller Index: Decline in Housing Prices Continues

The S&P/Case-Shiller home-price index data, released on Tuesday, showed accelerating price declines in the prices of existing single-family homes across the U.S. For the seventh straight month, no area experienced price gains on a year-over-year [YoY] basis.

The Index, which tracks 20 of the largest housing markets in the country, showed prices of existing single family homes declined by 10% in 14 of the 20 metro areas in the 12-month period ending October. 10-City and 20-City Indexes posted double-digit dips with annual declines of 19.1% and 18.0%, respectively.

According to David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, as of October ‘08, the 10-city index is down 25% from its mid-2006 peak and the 20-city is down 23%. Mr. Blitzer added that “the bear market continues; home prices are back to their March, 2004 levels.”

Of the 20 cities Case/Shiller tracks, only Cleveland and Denver markets showed any improvement on YoY returns compared to last month’s report. Charlotte, N.C. and Dallas, TX fared the best in terms of relative YoY returns. Both of these values however, are worse then those reported in the September.

Other metro areas including Atlanta, Charlotte, Detroit, Minneapolis, Tampa and Washington recorded their largest monthly decline on record. San Francisco, Las Vegas and Phoenix continued to lead decliners, reporting an annual price deterioration of 31.0%, 31.7% and 32.7%, respectively. Miami, Los Angeles, and San Diego were close behind with annual declines of 29.0%, 27.9% and 26.7%, respectively.

Three new markets joined the group of areas posting double-digit declines from a year ago: Atlanta 11%, Seattle and Portland showed drops of 10%.

Below is data from the 20 metro areas Case-Shiller tracks. It is sorted by name, level, and YoY change.

click to enlarge

Comments

[nvihinen:]

A nice visualization tool for home case shiller historical and futures:

lightsblue.com/homepri...

2008 Dec 31 02:15 PM

[WaltB:]

The answer is simple, perhaps too simple. Qualified home buyers need to be given an incentive to step up in a declining market. FHA, Fannie should be making 3 percent mortgages and thus creating a big demand from qualified renters. (The Feds are borrowing for less than 3 percent today on ten year money.) These new sales will clean up the supply including the upcoming foreclosures. Prices will stop declining and may go back up some. Also, let underwater homeowners refinance at 3 percent for the full amount of the original loan, so they may decide to stay in the home rather than dumping it back on the bank.
Our leaders have addressed everything but the real problem, sinking home prices. Instead, they elect to work from the top down instead of the bottom up. The ship is sinking from the bottom. Fix mainstreet first. Wallstreet will also be fixed.

Jan 01 09:58 AM

[4Annie:]

"The ship is sinking from the bottom. Fix mainstreet first. Wallstreet will also be fixed."
Couldn't agree more. Unfortunately most of us are not friends of Hank & Co., nor large contributors to the political hack class. I read an interesting fix to get turn around going, instead of sending trillions to incompetent businesses, treasury should refund 3 years of income tax payments to taxpayers to fix balance sheets and require half to be applied to debt. Voila, Instant recap of banks, bad debts, credit card, car & mortgages made good, consumer sentiment & spending fixed & economy can repair. Sure seems like a better fix than the dark hole of stupid failed automakers, banks & fat cats. Too much common sense for congress to comprehend, therefore will never happen. (perhaps if households would agree to send 3% to political class for bribe, er...reelection purse, then maybe would have a shot).

Jan 01 11:01 AM

[Goldner:]

Easy Fix.....Cut corperate tax, if they hire and create jobs

Go to a simplified Tax such as Fairtax.org which lets you keep what you earn and taxes goods higher...Makes sense because Americans are addicted to spending

When Corperations are not in tax threat they expand and create jobs, when they are threatend with higher taxes they move out of the USA and set shop up in other countries......

Feb 16 04:16 PM