The national reading of Standard & Poor’s closely watched Case-Shiller index registered a 3.9 percent decline during the third quarter of this year when compared to the same period in 2010.
That represents an improvement over the 5.8 percent decline posted in the second quarter, but S&P described home prices as weakening as the third quarter came to an end.
The national index rose by only 0.1 percent between the second and third quarters. S&P says home prices are now back to the levels seen during the first quarter of 2003.
Three cities posted new index lows as of the end of September – Atlanta, Las Vegas, and Phoenix.
Detroit and Washington D.C. were the only two metropolitan areas to post positive annual rates of change, up 3.7 percent and 1.0 percent, respectively. Detroit has now recorded three consecutive months of positive annual rates.
That represents an improvement over the 5.8 percent decline posted in the second quarter, but S&P described home prices as weakening as the third quarter came to an end.
The national index rose by only 0.1 percent between the second and third quarters. S&P says home prices are now back to the levels seen during the first quarter of 2003.
Three cities posted new index lows as of the end of September – Atlanta, Las Vegas, and Phoenix.
Detroit and Washington D.C. were the only two metropolitan areas to post positive annual rates of change, up 3.7 percent and 1.0 percent, respectively. Detroit has now recorded three consecutive months of positive annual rates.
Over the last year home prices in most cities drifted lower, but David M. Blitzer, chairman of the index committee for S&P, says “the plunging collapse of prices seen in 2007-2009 seems to be behind us.”
Still, Blitzer notes that any chance for a sustained recovery in the housing market will need the support of a stronger economy.
Looking at the August-to-September comparisons, 17 of the 20 cities included in S&P’s analysis and both composite readings were down for the month. Only New York, Portland, and Washington D.C. posted positive monthly returns versus August.
The 20-city composite of the Case-Shiller index slipped 0.6 percent in September when compared to the previous month. The 10-city composite was down 0.4 percent.
Both also posted annual rates of decline, with the 20-city reading down 3.6 percent and the 10-city down 3.3 percent from September 2010 levels.
The latest Case-Shiller results showed deeper dives than analysts were expecting, with forecasts for a 3.0 percent annual drop in the 20-city composite.
“It is a bit disturbing that we saw three cities post new crisis lows,” Blitzer said. “For the prior three or four months, only Las Vegas was weakening each month. Now Atlanta and Phoenix have fallen to new lows too.”
On a monthly basis, Blitzer says Atlanta actually posted a record low rate of -5.9 percent in September over August.
“The markets are fairly thin, and the relative lack of closed transactions might be exacerbating the downside,” according to Blitzer.
Still, Blitzer notes that any chance for a sustained recovery in the housing market will need the support of a stronger economy.
Looking at the August-to-September comparisons, 17 of the 20 cities included in S&P’s analysis and both composite readings were down for the month. Only New York, Portland, and Washington D.C. posted positive monthly returns versus August.
The 20-city composite of the Case-Shiller index slipped 0.6 percent in September when compared to the previous month. The 10-city composite was down 0.4 percent.
Both also posted annual rates of decline, with the 20-city reading down 3.6 percent and the 10-city down 3.3 percent from September 2010 levels.
The latest Case-Shiller results showed deeper dives than analysts were expecting, with forecasts for a 3.0 percent annual drop in the 20-city composite.
“It is a bit disturbing that we saw three cities post new crisis lows,” Blitzer said. “For the prior three or four months, only Las Vegas was weakening each month. Now Atlanta and Phoenix have fallen to new lows too.”
On a monthly basis, Blitzer says Atlanta actually posted a record low rate of -5.9 percent in September over August.
“The markets are fairly thin, and the relative lack of closed transactions might be exacerbating the downside,” according to Blitzer.
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