Home Prices Down 3.4% in October Year-Over-Year: S&P Case-Shiller

Home prices continue feeling the weight of distressed or foreclosed properties and a sales malaise punctuated by borrowers unable to take advantage of record low mortgage rates.
Through October, home prices slipped 1.2 percent compared to the previous month in the 20 U.S. cities measured by S&P/Case-Shiller, the widely cited barometer of the housing industry’s progress. Nineteen of the 20 cities saw a home price decrease.
The 20 cities as a whole saw home prices down 3.4 percent, 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 … seeing their annual rates of change improve,” said David M. Blitzer, Chairman of the Index Committee at S&P Indices.
However, those cities are still in negative annual rates for their home prices – only two posted positive annual returns, Detroit and Washington, D.C., with 2.5 percent and 1.3 percent, respectively.
As of October 2011, average home prices across the United States are back to their mid-2003 levels. From their June/July 2006 peak through October 2011, the decline for the 20-city composite index is at 32.1 percent.
Miami recorded no change in the year-ago rate for October 2011; while Atlanta, Detroit, Las Vegas, Los Angeles and Minneapolis saw their annual rates worsen. With an11.7 percent decrease, Atlanta saw the lowest annual return.

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