Home prices declined in 17 of 20 key housing markets over the past year, according to the S&P/Case-Shiller(R) Home Price Indices (which is produced by Standard & Poor’s, which—disclosure alert—is like BusinessWeek, owned by The McGraw-Hill Cos.) The chart makes for interesting reading. Detroit (-7.8%) San Diego (-5%), Boston (-4.7%) and Washington D.C. (-4.3%) suffered the biggest year-over-year declines of all cities. And what the heck is going on in Seattle and Portland? Seattle home prices were up 10.6% between February ‘06 and February ‘07, and Portland prices rose 7.7% (readers there, please illuminate).
In general, S&P economists say the data “indicates the deceleration and declines in home prices are showing no signs of turnaround.” So much for the talk that the market was stabilizing. The average consecutive “negative monthly return” of the 20 cities that S&P and Shiller studied is 5 months, and some markets are doing worse: San Francisco and Boston have yielded negative monthly returns since May of last year, notes S&P.
There’s a lot of interesting data in the release, which can be found here. And even more data, including historical price trends for each of those major markets, can be found here. I’d invite readers to help us pore through the data and pick out any interesting nuggets you find in this thread…
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.