Case-Shiller Trips, Atlanta Tumbles

Written by: editor   Tue, March 27, 2012 Beyond Today's News, Crisis Watch

S&P/Case-Shiller’s two price indices fell to levels 3.9 percent and 3.8 percent below those of year ago and both composites saw price declines of 0.8 percent in the month of January. Eight MSAs posted new all-time lows.

The biggest loser was Atlanta which fell 2.1 percent in January and has fallen by a cumulative 19.7 percent over the last six months. Atlanta also posted the worst annual return of all markets in the indices, down 14.8 percent. Seven of the cities were down by 1.0 percent or more.

As of January 2012, average home prices across the United States are back to the levels where they were nearly a decade ago - in early 2003. Measured from their June/July 2006 peaks through January 2012, the peak-to-current decline for both the 10-City Composite and 20-City Composite is 34.4%. January’s levels are new lows for both Composites in the current housing cycle.

Today’s only good news was month-over-month increases in Miami, Phoenix and Washington DC. Denver, Detroit and Phoenix were the only cities to post positive annual growth rates of +0.2 percent, +1.7 percent and +1.3 percent. Ten markets saw their annual prices improve on an annual basis: Dallas, Denver, Miami, Minneapolis, New York, Phoenix, San Diego, Seattle, Tampa and Washington DC .

Sixteen of 19 MSAs also saw home prices decrease over the month; only; while nine of the MSAs saw their annual returns worsen compared to what was reported for December 2011. respectively. Atlanta again posted the lowest annual (and only double-digit negative) return at -14.8 percent.

“Despite some positive economic signs, home prices continued to drop. The 10- and 20- City Composites and eight cities - Atlanta, Chicago, Cleveland, Las Vegas, New York, Portland, Seattle and Tampa - made new lows,” said David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Detroit and Phoenix, two cities that have suffered massive price declines, plus Denver, saw increasing prices versus January 2011. The 10-City Composite was down 3.9 percent and the 20-City was down 3.8 percent compared to January 2011.

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