Home Prices Post Record Annual Decline

October 28, 2008 No Comments »

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Home prices continued their long descent in August, with annual declines of 17.7 percent and 16.6 percent seen in the S&P/Case-Shiller 10-City Composite and 20-City Composite Home Price Indices.

While the double-digit declines are a record, the acceleration of decline during the month was relatively moderate, as July data indicated annual declines of 17.5 percent and 16.3 percent, respectively.

Both indices have now been in decline for 20 consecutive months and for the fifth straight month, every region included has reported a negative annual return.

The worst performer has been Phoenix, where home prices are off 30.7 percent compared to August 2007, followed by Las Vegas with a 30.6 percent decline and Miami with a 28.1 percent price drop.

Home prices are also off more than 25 percent in Los Angeles, San Diego, and San Francisco, which partially explains the surge in home sales over the last couple months.

Dallas has fared best over the past 12 months, with an annual decline of just 2.7 percent, followed by Boston with a 4.7 percent loss and Denver down 5.1 percent.

From July to August, San Francisco saw the most dramatic fall in home prices, down 3.5 percent, while home prices actually edged up 1.1 percent in Cleveland.

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