Home Prices Continue Steep Decline

The S&P/Case-Shiller Home Price Indices continued to show a broad-based decline in the prices of existing homes nationwide for October, with 14 of 20 metro areas reporting double-digit declines from a year ago.

Compared to price levels in October 2007, the group’s 10-City Composite Index was down 19.1 percent while its 20-City Composite Index was down 18 percent on a yearly basis, with both indices setting new record lows in the process.

“The bear market continues with home prices back to their March 2004 levels,” said David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “As of October 2008, the 10-City Composite is down 25 percent from its mid-2006 peak, and the 20-City Composite is down 23.4 percent.”

Three of the markets measured in the composites have entered the “double-digit” club for the first time. Those markets include Atlanta, reporting a 10.5 percent price decline, Seattle, reporting a 10.2 percent decline, and Portland with a 10.1 percent decline in home prices.

Since October 2007, three markets have given back more than 30 percent of their home values. Phoenix is the weakest, losing 32.7 percent of home values over the past year. Las Vegas was second, losing 31.7 percent of home values. Reporting a 31 percent loss of home values, San Francisco was the third weakest market. Next in line were Miami (where prices were down 29 percent), Los Angeles (down 27.9 percent) and San Diego (down 26.7 percent) over the past year.

All 20 metro areas covered by the Case-Shiller Indices suffered a second consecutive monthly decline in October, with Atlanta, Charlotte, Detroit, Minneapolis, Tampa and Washington posting their largest monthly declines on record. However, Dallas and Charlotte posted the lowest monthly declines for October, reporting 3 percent and 4.4 percent price declines respectively.