Home prices across the U.S. declined about 2 percent during the third quarter, according to the S&P Case-Shiller Home Price Indices, which monitor the rate at which U.S. home prices increase or decrease. Since the end of the third quarter of 2009, home prices have fallen 1.5 percent. S&P's monthly 10- and 20-city composite indices tell a different story, however; those rose 1.6 percent and 0.6 percent, respectively. Overall, though, it seems annual home price returns are slowing; September was the fourth consecutive month where annual price increases moderated from the previous month's pace.
Home prices across the U.S. declined about 2 percent during the third quarter, according to the S&P Case-Shiller Home Price Indices, which monitor the rate at which U.S. home prices increase or decrease. Since the end of the third quarter of 2009, home prices have fallen 1.5 percent. S&P's monthly 10- and 20-city composite indices tell a different story, however; those rose 1.6 percent and 0.6 percent, respectively. Overall, though, it seems annual home price returns are slowing; September was the fourth consecutive month where annual price increases moderated from the previous month's pace.
"Another weak report; weaker than last month," said David M. Blitzer, chairman of the Index Committee at S&P. "While some of the bad numbers may reflect the end of the government's tax incentive for first time homebuyers, there are other problems weighing on the housing market," including the U.S. economy and a large housing surplus bolstered by delinquent mortgages, pending foreclosures, and vacant homes. "A sustained recovery could be a ways off," Blitzer added.
