Record Declines in Home Prices in October, According to S&P
Thursday, 27 December 2007
Data through October 2007, released yesterday by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, a leading measure of US home prices, show broadbased declines in the prices of existing single family homes across the United States, marking the 10th consecutive month of negative annual returns and the 23rd consecutive month of decelerating returns.
“No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim,” says Robert J. Shiller, Chief Economist at MacroMarkets LLC. “Not only did the 10-City Composite post a record low in its annual growth rate, but 11 of the 20 metro areas did the same. If you look at the monthly figures, every MSA went down in both October and September. Eleven of the 20 MSAs, in addition to the two composites, recorded their single largest monthly decline on record in October. For both the 10-City and 20-City composites this was a decline of 1.4 percent over September.”
Miami surpassed Tampa in October, reporting a double-digit annual decline of 12.4 percent. Tampa followed with negative 11.8 percent, Detroit with negative 11.2 percent and San Diego with negative 11.1 percent. Six of the metro areas are now posting double digit declines in their annual growth rates. Atlanta and Dallas finally entered negative territory, with declines of 0.7 percent and 0.1 percent, respectively, leaving only Charlotte, Portland and Seattle as the MSAs still experiencing positive annual growth rates.
The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 20 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com
For complete release, with charts, visit http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_122622.pdf for complete release with charts.