Case-Shiller Index: Decline in Housing Prices Continues

Includes: ICF, RWR
by: Ron Haruni

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.

Case-Shiller Tracks

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