U.S. home prices have record decline

November 25, 2008

U.S. home prices slid more than 16 percent in the third quarter compared to the same time a year ago, a widely watched survey indicates.

CNN reported Tuesday that the 16.6 percent decline in the S&P Case-Shiller Home Price national index eclipsed the previous record of 15.1 percent set during the second quarter.

Case-Shiller’s separate index of 10 major cities showed home prices fell a record 18.6 percent, while its 20-city index dropped a record 17.4 percent. Home prices in the 10-city index have fallen for 26 consecutive months, CNN reported.

The turmoil in the financial markets is placing further downward pressure on a housing market already weakened by its own fundamentals, said David Blitzer, Standard & Poor’s spokesman for the indexes. All three aggregate indices, and 13 of the 20 metro areas, are reporting new record rates of decline … Prices are back to where they were in early 2004.

The weakest housing market is in Phoenix, where the 12-month loss came to 31.9 percent. The best performing markets were Dallas and Charlotte, N.C., where prices dropped 2.7 percent and 3.5 percent, respectively.

Source: upi

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