Data through November 2011, released by S&P Indices for its S&P/Case-Shiller Home Price Indices, showed declines of 1.3 percent for both the 10- and 20-City Composites in November over October. For a second consecutive month, 19 of the 20 cities covered by the Home Price Indicies also saw home prices decrease. The 10- and 20-City Composites posted annual returns of -3.6 percent and -3.7 percent versus November 2010, respectively, totals worse than the -3.2 percent and -3.4 percent respective rates reported in October.
In addition to both Composites, 13 of the 20 Metropolitan Statistcal Areas (MSAs) saw their annual returns decrease compared to October’s data. New York and Tampa saw no change in annual returns in November; while Charlotte, Cleveland, Denver, Minneapolis and Phoenix saw their annual rates improve. At a decline of 11.8 percent, Atlanta continued to post the lowest annual return. Detroit and Washington, D.C. were the only two cities to post positive annual returns of +3.8 percent and +0.5 percent, respectively, in November. While positive, both cities saw these annual rates fall versus October’s data.
In November 2011, the 10- and 20-City Composites recorded annual returns of -3.6 percent and -3.7 percent, respectively. Both Composites and 13 MSAs—Atlanta, Boston, Chicago, Dallas, Detroit, Las Vegas, Los Angeles, Miami, Portland, San Diego, San Francisco, Seattle, and Washington, D.C.—saw their annual rates worsen in November compared to October.
“Despite continued low interest rates and better real GDP growth in the fourth quarter, home prices continue to fall. Weakness was seen as 19 of 20 cities saw average home prices decline in November over October,” said David M. Blitzer, chairman of the Index Committee at S&P Indices. “The only positive for the month was Phoenix, one of the hardest hit in recent years. Annual rates were little better as 18 cities and both Composites were negative. Nationally, home prices are lower than a year ago."
As of November 2011, average home prices across the United States are back to the levels where they were in mid-2003. Measured from their June-July 2006 peaks through November 2011, the peak-to-current decline for both the 10-City Composite and 20-City Composite is -32.9 percent. The recovery from recent lows are +1.0 percent and +0.6 percent, respectively.
As in October 2011, Phoenix was the only MSA that posted a monthly gain, +0.6 percent in November. Both the 10-City and 20-City Composites were down 1.3 percent, from their October 2011 levels. Atlanta, Cleveland, Detroit and Las Vegas were the four cities where average home prices were below their January 2000 levels.