Home Prices Fall In October;   back to mid-2003 levels

Dennis Norman

Dennis Norman

This morning, the S&P/Case-Shiller Index report for October was released showing US home prices decreased from the month before as well as the year before. The 10-city and 20-city composites fell by 1.1 percent and 1.2 percent respectively and the home price indexes were down 3.0 percent and 3.4 percent respectively from the year before.

Report highlights:

  • U.S. home prices, as determined by the 10- and 20-City Composites, fell 1.1% and 1.2% respectively in October versus September
  • Nineteen of the 20 cities covered by the indices saw home prices decrease over the month
  • The 10- and 20-City Composites posted annual returns of -3.0% and -3.4% respectively versus October 2010
  • Fourteen of the 20 MSAs and both Composites saw improved annual returns compared to September’s data
  • Average home prices across the U.S.are back to their mid-2003 levels
  • Measured from their June/July 2006 peaks, the peak-to-current declines for the 10-City Composite & 20-City Composite are -31.9% and -32.1%, respectively.

“There was weakness in the monthly statistics, as 19 of the cities posted price declines in October over
September,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Eleven of the
cities and both composites fell by 1.0% or more during the month. And even though some of the annual
rates are improving, 18 cities and both Composites are still negative. Nationally, home prices are still
below where they were a year ago. The 10-City Composite is down 3.0% and the 20-City is down 3.4%
compared to October 2010.

“In the October data, the only good news is some improvement in the annual rates of change in home
prices, with 14 of 20 cities and both Composites seeing their annual rates of change improve. The crisis
low for the 10-City Composite was back in April 2009; whereas it was a more recent March 2011 for the
20-City Composite. The 10-City Composite is about 2.4% above its relative low, and the 20-City
Composite is about 1.9%



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