Home values continue to erode in key markets across the United States, according to new data released today by Standard & Poor's.
The S&P/Case-Shiller Home Price Indices, comprised of the annual returns for both 10-City and 20-City composite indices, shows a continued steep decline in November 2006, with the with the 20-City composite yielding relatively dismal annual returns of 1.7 percent, compared to 15.7 percent only a year ago.
Seventeen of the 20 cities measured showed declining prices in November versus October.
â€œCountrywide, home price declines appear to show no signs of slowing down,â€? says Robert J. Shiller, Chief Economist at MacroMarkets LLC. â€œBut while the downward trend is visible on a national level, it is clear that certain cities, like Boston and Detroit, have been more susceptible to the price correction compared to the deteriorating, yet still solid, returns of cities like Seattle and Portland.â€?
With the exception of Charlotte, all cities tracked for the S&P/Case-Shiller Indices showed further declines in annual returns from those published a month ago. With Minneapolis now reporting negative annual returns, seven out of the 20 cities are now in negative territory.
The November reading for the 10-City Index represents the worst month-to-month decline since December 1993, and the worst annual growth numbers since September 1996. The recent pattern of decline mirrors the steep declines seen in 1990 during the start of the last housing slump, which lasted nearly five years, which was followed by a historic boom in house values that began in 1998.
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