Tuesday, March 25, 2008
Standard and Poor's released the January data for the S&P/Case-Shiller Home Price Indices showing an 11.4 percent year-over-year decline for the 10-City Composite Index, the steepest decline on record. Indices for individual cities are shown below:Poor Detroit - where they got the housing bust without the housing boom - is now in negative territory. Home prices are now below where they were in January of 2000 and the scale in the chart above had to be adjusted to take that into account (a common occurrence around here these days).
David M. Blitzer, Chairman of the Index Committee at Standard & Poor's noted:
“Unfortunately it does not look like early 2008 is marking any turnaround in the housing market, after the declining year recorded throughout 2007. Home prices continue to fall, decelerate and reach record lows across the nation. No markets seem to be completely immune from the housing crisis, with 19 of the 20 metro areas reporting annual declines in January and the remaining – Charlotte North Carolina – eking out a benign 1.8% growth rate. Hey, what happened to the monthly comments by Robert Shiller?
Looking deeper into the data, you can see that 16 of the metro areas are also reporting record low annual growth rates. The monthly data show that every one of the MSAs has now declined every month since September 2007, marking five consecutive months. On top of that, the declines have increased through time, in general, as 13 of the 20 MSAs reported their single largest monthly decline in January."
In tabular form, the January data looks like this:
Gee, just a few years ago, who would have thought that Las Vegas, Miami, and Phoenix would be closing in on 20 percent year-over-year home price declines and that Southern California would not be far behind?
Things were going so good in all those areas.