Housing prices in U.S. cities drop 16.3%
NEW YORK–A closely watched index released yesterday showed home prices tumbling by the sharpest annual rate ever in July, and though the monthly rate of decline is slowing, there is no turnaround in sight.
The Standard & Poor’s/Case-Shiller 20-city housing index fell a record 16.3 per cent in July from the year-ago month, the largest drop since its inception in 2000. The 10-city index plunged 17.5 per cent, its biggest decline in its 21 year history.
Prices in the 20-city index have plummeted nearly 20 per cent since peaking in July 2006. The 10-city index has fallen more than 21 per cent since its peak in June 2006.
No city in the 20-city index saw annual price gains in July – for the fourth straight month.
However, the pace of monthly declines is slowing. Between May and July, for example, home prices fell at a cumulative rate of 2.2 per cent – less than half the cumulative rate experienced between February and April.
But there’s "no evidence of a bottom," said David M. Blitzer, chair of the index committee at S&P.
Las Vegas prices plunged the most at nearly 30 per cent, with Phoenix diving 29 per cent and Miami off 28 per cent faxless cash advance. Prices in the seven cities in the Sunbelt all fell between 20 per cent and 30 per cent from a year ago.
Only seven cities showed positive or flat returns from June to July, down from nine that showed month-over-month gains in June.
Atlanta, Boston, Dallas, Denver and Minneapolis all posted positive returns for three months or more.
Last week, the National Association of Realtors said the median sales price of an existing home fell 9.5 per cent to $203,100 (U.S.) last month, the largest annual price decline on records dating to 1999. The median price of a new home fell 5.5 per cent to $221,900 in August, the commerce department also said last week.
The Case-Shiller numbers have yet to reflect the effects of the recent turmoil in the financial industry.
Mortgage rates have been on a roller-coaster and analysts said the confidence of homebuyers has been eroded by market losses and the government’s stalled Wall Street bailout.
Associated Press