Home price decline continues

S&P/Case-Shiller Home Price Indices tracks 2 different indices, ten & twenty metropolitan statistical areas across the country & is released by Standard & Poor's. The report released in January indicates that nationwide price decline for existing family homes has continued into this year also. Sixteen of the twenty metropolitan statistical areas (MSAs) in the survey have reported record declines with 10 of them reaching double digits.

Both 20-City & 10-City Composite Indices now report annual declines exceeding 10%. The 20-City has reported a decline of 10.7% & the 10-City a record annual decline of 11.4%.

Just few months back also Miami & Las Vegas were the boom cities, now price-wise, are the weakest cities in January. Miami & Las Vegas have showed decline in prices year-over-year of 19.3% and Phoenix at 18.2% is closely following these two cities in price declines.

Some other metropolitan statistical areas having double-digit price declines include Los Angeles (16.5%), San Diego (16.7%), Detroit (15.1%), Minneapolis (10%), Washington (10.9%), Tampa (15%), & San Francisco (13.2%).

The base year used by the indices is 2000, & number 100 is assigned to year 2000. So, a present score of 150 will indicate a 50% appreciation in price in last 8 years. The score for 20-City Composite is 180.65 & the 10-City 196.06. With this long view of Home Price Indices data, homeowners in many metropolitan statistical areas are still counting their blessings as some of the worst hit cities as per the present performance are even now showing remarkable appreciation since year 2000, like Log Angeles (224.21), Miami (225.40) & Las Vegas (186.05).

In his remarks on survey results, David M. Blitzer, Chairman of the Index Committee at Standard & Poor's said;