Home price declines continue for 23 straight months:S&P
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S&Ptoday released May numbers for the Case-Shiller Home Price Index, a measure of U.S. home prices. According to the latest numbers, May 2008 was worse that previous numbers for April indicating a continued downward trend in the real-estate market.
All the 20 Metros’ in the index posted annual declines, nine of which are posting record lows and 10 of which are in double-digits. Both the 10-City Composite and the 20-City Composite are reporting record low annual declines.
The overall real estate market continued to slide in May, with the 10-City and 20 City Composites
declining by 1.0% and 0.9% for the month, respectively. Since August 2006, there has not been one
month where we have seen overall price increases, as measured by the two Composites.
The Sunbelt led by Miami, Tampa, Phoenix, Las Vegas, San Diego and Los Angeles saw the biggest booms and now see the largest declines. Miami and Las Vegas were the worst performers returning -3.6% and -2.9%, respectively.
The S&P/Case-Shiller Composite of 20 Home Price Index is a value-weighted average of the 20 metro area indices. The indices have a base value of 100 in January 2000; a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the subject market.
