Tuesday, October 26, 2010

Home Price Index Falls 0.2% in August

In Tuesday's release of the S&P's/Case-Shiller home price index, housing prices fell by 0.2 percent in August from the month before. Fifteen of the 20 featured cities showed monthly price declines, and prices are expected to continue to drop in the coming months.
Phoenix saw the largest decline with a 1.3% drop in home prices. Prices in three California cities--San Francisco, San Diego and Los Angeles--which had previously showed strength, also fell, but by less than 1%.
Detroit, Chicago, Washington, New York and Las Vegas were the only cities to show monthly price increases.
Although the index has risen 6.7% from its lowest level in April 2009, it remains almost 28% below its peak in July 2006.
Housing markets may continue to struggle due to recent complications with foreclosure documents. Would-be buyers are refraining from home purchases because of potentially invalid foreclosure purchases. In an October National Association of Realtors survey, about 23% of real estate agents said they had clients no longer interested in purchasing a foreclosed property due to the foreclosure mess.