Housing prices continue to go down at record levels, according to the S&P/Case-Shiller Home Price Indices out today. The National Home Price Index had its largest annual decline in the 21-year history of the Case-Shiller Indices, dropping 19.1 percent from March, 2008 to March 2009. David Blitzer, chair of the Index Committee for Standard and Poor's, says the all areas are showing annual drops, but some have been hit much harder than others:
All 20 metro areas are still showing negative annual rates
of change in average home prices with nine of the metro areas having record
annual declines. Seventeen metro areas recorded a monthly decline in March,
with Minneapolis, Detroit and New York posting record monthly declines. On a
positive note, nine of MSAs are reporting a relative improvement in year-over-year
returns and nine of the 20 metro areas saw an improvement in their monthly
returns compared to February. Furthermore, this is the second month since
October 2007 where the 10- and 20-City Composites did not post a record annual
decline. Based on the March data, however, we see no evidence that that a
recovery in home prices has begun.
Nationally, prices are about where they were in the last quarter of 2002, and down 32.2% on average from the second quarter of 2006 (the peak, according to the Case-Shiller Indices):
The Phoenix, Las Vegas, and San Francisco metro areas suffered the worst annual declines at 36.0%, 31.2%, and 30.1% respectively. Denver, Dallas, and Boston are at the other end of the spectrum, posting declines of 5.5%, 5.6%, and 8.0% respectively. Minneapolis had the largest monthly decline in the history of the indices as home prices there dropped 6.1% in March. And as the Case-Shiller summary report points out, the data for New York and Detroit paints a very telling picture of how different cities have fared if you take a longer view.
For March, Detroit and New York also reported their largest monthly declines, returning -4.9% and -2.5%, respectively. The performances of these two MSAs represent the extremes of the national boom/bust scenario. The New York index is still up 73.4% from January 2000, though down 19.7% from its June 2006 peak. The Detroit index is 29.0% lower than in January 2000. Detroit home prices are back to their mid-1995 levels.
Read the report here.