Home Values Down 18.2 Percent: Report
Home values continued to decline in all 20 metro areas of The Case-Shiller 20-city home price index in the 12 months ending in November, with 11 of the 20 areas posting record rates of annual decline, Standard & Poor's reported Tuesday.
The 20-City Composite Index as a whole fell 2.2 percent from October to November -- with home values in all 20 cities falling at least one percent -- and a record-setting 18.2 percent for the year ending November.
"Since August 2006, the 10-city and 20-city composites have declined every month -- a total of 28 consecutive months," said David Blitzer, chairman of the index committee at Standard & Poor's. As of November, Case-Shiller's 10-city index was down 27 percent from its 2006 peak and the 20-city was down 25 percent.
The Sun Belt continues to be hit the hardest, particularly Phoenix and Las Vegas which were the worst performers for the month, dropping 3.4 percent and 3.3 percent respectively. As for the year, prices in Phoenix fell a whopping 33 percent. Las Vegas followed closely with a 32 percent plunge in prices.
Denver and Cleveland were the best reporting markets for the month, where values dropped 1.1 percent and 1.2 percent, respectively. On a relatively positive note, Standard & Poors said eight of the 20 metro areas recorded better annual returns compared to last month.
In terms of relative year-over-year returns, Dallas and Denver faired the best in November. Overall bleak data, however, shows that the decline in home prices is proving to be a challenge for all regions -- regardless of geography or employment opportunities, the report said.
"Housing wealth is falling by some $380 billion per month, or about $370 per adult per week," wrote Ian Shepherdson, chief domestic economist for High Frequency Economics, according to Market Watch. "No wonder people are miserable."
Write to Kelly Curran at email@example.com.
Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.
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