Broad Decline in Home Prices, Says S&P/Case-Shiller Indices

Data for the month of October 2011 shows a decrease in home prices from September, according to information released by S&P Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices.

Indices showed decreases of 1.1% and 1.2% for the 10- and 20-City Composites in October vs. September. Nineteen of the 20 cities covered by the indices also saw home prices decrease over the month. The 10- and 20-City Composites posted annual returns of -3.0% and -3.4% versus October 2010, respectively.

Fourteen of the 20 MSAs and both Composites saw improved annual returns compared to September's data. Miami saw no change in annual returns in October; while Atlanta, Detroit, Las Vegas, Los Angeles and Minneapolis saw their annual rates worsen. At -11.7% Atlanta posted the lowest annual return. Detroit and Washington DC were the only two cities to post positive annual returns of +2.5% and +1.3%, respectively.

In October 2011, the 10- and 20-City Composites recorded annual returns of -3.0% and -3.4%, respectively. Both Composites and 14 MSAs – Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa, and Washington DC – saw their annual rates improve in October compared to September.

"There was weakness in the monthly statistics, as 19 of the cities posted price declines in October over September," says David M. Blitzer, Chairman of the Index Committee at S&P Indices. "Eleven of the cities and both composites fell by 1.0% or more during the month. And even though some of the annual rates are improving, 18 cities and both Composites are still negative. Nationally, home prices are still below where they were a year ago. The 10-City Composite is down 3.0% and the 20-City is down 3.4% compared to October 2010. "

A sign of light in the October data is some improvement in the annual rates of change in home prices, with 14 of 20 cities and both Composites seeing their annual rates of change improve. The crisis low for the 10-City Composite was back in April 2009; whereas it was a more recent March 2011 for the 20-City Composite. The 10-City Composite is about 2.4% above its relative low, and the 20-City Composite is about 1.9%. 

As of October 2011, average home prices across the United States are back to the levels where they were in mid-2003. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 24 years of history for these data series is available, and can be accessed in full here.

 

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