Case-Shiller: Existing Home Prices Fall 1.0 Percent – Down 2.4 Percent from Year Prior

According to the twenty-city Case-Shiller Index, existing home prices fell in December by 1.0 percent from the previous month on a non-seasonally adjusted basis. The ten-city metro area index decreased by 0.9 percent. This was the fifth consecutive monthly decrease for both indices.

From a year prior, the twenty-city index was down 2.4 percent, the steepest decline since December 2009. San Diego and Washington DC were the only cities reporting year-over-year appreciation. The ten-city index was down 1.2 percent.

The recent decline is more reflective of the continuing effects of the homebuyer tax credit expiring and persistently high levels of excess home inventories which are being fed by increasing foreclosures. The economic recovery will likely slow distressed sales and create price stability in late 2011 or 2012.

Not Seasonally Adj	Dec	Nov	Oct	Sep	Aug	Jul
10 City Index
M/M % Change	-0.9	-0.8	-1.3	-0.6	-0.2	0.7
Y/Y % Change	-1.2	-0.5	0.2	1.4	2.5	4.0
20 City Index
M/M % Change	-1.0	-1.0	-1.3	-0.8	-0.3	0.6
Y/Y % Change	-2.4	-1.6	-0.8	0.4	1.6	3.2

Source: Standard & Poor's