Tuesday, November 29, 2011

Existing Home Prices Deteriorated in September

S&P Case Shiller’s 10- and 20-city indices showed existing home prices falling 0.4% and 0.6% respectively in a report released by S&P this morning. Prices declined in 17 out of the 20 metro areas measured.

On a year-ago basis prices did improve slightly compared to the same period reported in August. The 10-city index declined 3.3% from last year, a slight improvement from the 3.5% decline reported last month. The 20-city index showed similar improvement posting a 3.6% drop from a year ago, an improvement from the 3.8% drop reported in August.

Of the 20 metropolitan areas surveyed only three saw prices strengthen. Washington DC saw the strongest gain with prices improving 1.2% from August. New York and Portland both saw a meager 0.1% jump in prices.

Atlanta fared the worst, experiencing a 5.9% drop. Tampa and San Francisco also saw significant drops of 1.5% each.

Following a period of stability this summer, housing price declines are reaccelerating. The price weakness is likely a result of an increased number of distressed sales. Although other recent data indicates the overall housing market should begin recovering, the trough in home prices will lag this recovery until the distressed properties leave the market.

Read the report

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