Bloomberg News

U.S. Home Prices Fall 2.2 Percent From a Year Earlier, FHFA Says

November 29, 2011

Nov. 29 (Bloomberg) -- U.S. home prices dropped 2.2 percent in the 12 months through September as the housing market struggled to emerge from a five-year bust, according to the Federal Housing Finance Agency.

The slump was led by a 5.7 percent decrease in the region that includes California, the agency said today in a report from Washington. The second-largest decline was 4.9 percent in the area that includes Nevada.

Falling home prices are sapping confidence in real estate and causing potential homebuyers to put off purchases. The share of people in October who said they plan to buy a home in the next six months tumbled to 3.9 percent from 4.7 percent in September, the lowest reading in almost a year, according to a survey by the Conference Board in New York.

Prices in September rose 0.9 percent from the previous month, according to the FHFA. That was better than economists’ forecast for a decrease of 0.1 percent, the average of 14 estimates in a Bloomberg survey.

A separate report today showed that home prices in 20 U.S. cities dropped 3.6 percent in September from a year earlier. The S&P/Case-Shiller index was expected to fall 3 percent, according to the median estimate of 32 economists in a Bloomberg survey.

--Editors: Kara Wetzel, Rick Levinson

To contact the reporter on this story: Kathleen M. Howley in Boston at kmhowley@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net


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