US Housing Prices Down 14% in First Quarter from Last Year
The S&P/Case-Shiller U.S. National Home Price Index fell 14.1% in the first quarter versus the first quarter of 2007, the largest in the Index’s 20-year history. As a comparison, during the 1990-91 housing recession the annual rate bottomed at -2.8%.
Other key points:
- The 10-City and 20-City Composites also set new records, with annual declines of -15.3% and -14.4%, respectively.
- 19 of the 20 metro areas reported annual declines with six of those now at negative rates exceeding -20%.
- 15 of the metro areas reported record lows, and eleven are in double digit decline, with Chicago being the latest market to join these ranks.
- 18 of the metro areas report at least seven consecutive months of negative returns.
- There was monthly price appreciation in Charlotte (up 0.2%) and Dallas (up 1.1%).
- Las Vegas remains the weakest market, reporting an annual decline of -25.9%, followed by Miami (-24.6%) and Phoenix (-23.0%).
- Charlotte was the only market with appreciation over the past year, returning +0.8%.
- Miami was the worst performer in March, returning -4.5% for the month.
- Dallas and Charlotte were the only two markets to provide positive returns for the month.
Still, this is not bad news for everyone. It makes houses more affordable for buyers and should help chip away at the inventory of unsold homes hanging over the market – unless, of course, buyers think prices have further to fall.
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