Standard & Poor's has released its S&P/Case-Shiller Home Price Indices showing in December that the 10-City and 20-City Composites posted annual rates of decline of 1.2 percent and 2.4 percent, respectively. The leading measure of U.S home prices showed that the U.S. National Home Price Index declined by 3.9 percent during the fourth quarter of 2010. The National Index is down 4.1 percent versus the fourth quarter of 2009, which is the lowest annual growth rate since the third quarter of 2009, when prices were falling at an 8.6 percent annual rate.
The cities with the greatest year-over-year drop in values are Detroit at -9 percent, Phoenix at -8.3 percent, and Atlanta -8.0 percent. Two cities that have seen positive growth in values are Washington D.C. at 4.1 percent and San Diego at 1.7 percent. This is a drop from the four cities that the in the January 2011, S&P/Case-Shiller Home Price Index.
"We ended 2010 with a weak report. The National Index is down 4.1 percent from the fourth quarter of 2009 and 18 of 20 cities are down over the last 12 months. Both monthly Composites and the National Index are moving closer to their 2009 troughs. The National Index is within a percentage point of the low it set in the first quarter of 2009. Despite improvements in the overall economy, housing continues to drift lower and weaker," said David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "Unlike the 2006 to 2009 period when all cities saw prices move together, we see some differing stories around the country. California is doing better with gains from their low points in Los Angeles, San Diego and San Francisco. At the other end is the Sun Belt – Las Vegas, Miami, Phoenix and Tampa. All four made new lows in December. Also seeing renewed weakness are some cities that were among the last to reach their peaks including Atlanta, Charlotte, Portland OR and Seattle, where news lows were also seen. Dallas, which peaked late, has so far stayed above its low marked in February 2009."
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