Here is the latest home price data from the Case-Shiller Index. As expected, home values continued to take it on the chin in October.
From Bloomberg by Bob Willis entitled: October Home Prices in 20 U.S. Metro Areas Fall 18%
Home prices in 20 major U.S. cities declined at the fastest rate on record, depressed by mounting foreclosures and slumping sales.
The S&P/Case-Shiller index declined 18 percent in the 12 months to October, more than forecast, after dropping 17.4 percent in September. The gauge has fallen every month since January 2007. Year-over-year records began in 2001.
The financial market meltdown that’s reverberated around the globe has prompted banks to curb lending, signaling the housing slump will persist for a fourth year in 2009. Falling property values have eroded household wealth, causing consumers to pare spending and deepening what is projected to be the longest recession in the postwar period.
“We’re seeing a shift to a housing market that is driven by a poor economy rather than a housing market that’s driven by oversupply,” said Guy Lebas, chief economist at Janney Montgomery Scott LLC in Philadelphia. “The credit problems that hit in October exacerbated the speed of it.”
Economists forecast the 20-city index would fall 17.9 percent from a year earlier, according to the median of 21 estimates in a Bloomberg News survey. Projections ranged from declines of 17 percent to 18.4 percent.
Compared with a year earlier, all areas in the 20-city survey showed a decrease in prices in October, led by a 33 percent drop in Phoenix and a 32 percent decline in Las Vegas.
“The bear market continues,” David Blitzer, chairman of the index committee at S&P, said in a statement. The declines in Atlanta, Seattle and Portland surpassed 10 percent for the first time, he said.”
Here’s the latest chart….