Tuesday, February 28, 2012

Existing Home Prices Continue to Decline

Housing prices continued to decline in December, with S&P’s Case-Shiller index falling 1.1% for both the 10- and 20-city indices. Home prices fell 4.0% from a year ago, according to the 20-city index, deteriorating from the 3.8% decline reported over the same period in November. The 10-city index also deteriorated to a 3.9% decline, from a 3.8% decline reported in November.

Only one metro area remains with prices above year-ago levels. Detroit saw home prices appreciate just 0.5% in 2011. Price declines range from a 0.4% year-over-year decline in Denver to a 12.8% decline reported in Atlanta.

Despite reports indicating that housing starts are picking up and home sales are stabilizing, prices continue to decline. Home prices will be the last housing indicator to improve, as the demand must improve enough to take up the excess inventory of homes on the market.

Read the report.

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