Home Price Decline Hits New Record

U.S. home prices showed broad based, record declines through October according to data released today (.pdf) by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices. The index's Ten-City measure fell 6.7% annually, a record low. The 20-City index recorded an annual decline of 6.1%.

“No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim,” Robert J. Shiller, Chief Economist at MacroMarkets LLC, said. “Not only did the 10-City Composite post a record low in its annual growth rate, but 11 of the 20 metro areas did the same." Miami posted the worst decline at -12.4%, surpassing Tampa's -11.8%.

StreetTRACKS SPDR Homebuilders ETF (XHB) fell 0.5% in midday trading. Homebuilder stocks did worse: D.R. Horton Inc. (DHI) fell 1.4%; KB Home (KBH) was off 1.6%; Hovnanian Enterprises Inc. (HOV) dropped 3.2%; Beazer Homes USA Inc. (BZH) was down 4.1%.

Additional Reading: Are We Having a Housing Crisis Déjà Vu?

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Comments

[Dogbert]

What is hidden is even more Alarming. We all know existing homes are Selling by "Sellers paying Closing Costs" and even a leased mercedes in driveway. developers are paying-out "$ 10,000 to $ 100,000 cash and kitchen grante & s steel top-end applances, swimming pools, Upgrades" ... ALL Within the "Recorded Selling Price" Developer Contracts To KEEP OFFICIAL PRICE UP and "Discounts Hidden"!

[Jordan Fogal]

It is only going to get worse.
Consumer confidence is at an all time low because no one is ooking out for them. Even the BBB refuses to go after big builders and follow up on the bad ethical practices of these crooks.
The Attorney general in Texas had over 12,000 complaints against bad builders and refused to investigate even one.
Arbitration clauses have forced the consumer behind closed doors with big business and these consumers have lost 94% of the time. The homeowers and consumers are untrusting of anyone right now and who can blame them. Big builders are delivering cookie cutter houses with warrenties that are no good. They are defective and substandard. These houses will not make the historical register...they will not live out the term of the mortgage. Ours only lasted 29 months and it was uninhabitable.
Please google my name for more information Jordan Fogal

[Jay Jay]

Did the value dropping below what you paid also contribute to making it uninhabitable? This is what I'm wondering. When values are going up, nobody argues, when values drop, sue!

[I Need Some Information!]

I am trying to gather data on the historical and future home prices, by State. Can anyone point me in the right direction?
[e-mail]