U.S. metropolitan cities' home prices drop in February - study

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U.S. metropolitan cities' home prices drop in February - study

2011-04-27 05:37:31 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- U.S. home prices in February were lower than a year ago but still slightly above their April 2009 bottom, according to the latest S&P/Case-Shiller report, which was released on Tuesday.

In its 10-city and 20-city study, the S&P/Case-Shiller indexes were both down 1.1 percent versus January. On a year-to-year basis, the 10-city group fell 2.6 percent, while the 20-city group dropped 3.3 percent.

Washington D.C. was the only market to post a year-over-year gain with an annual growth rate of +2.7 percent, posting 15 consecutive months of positive annual growth rates since December 2009. Ten of the 11 cities that made new lows in January saw new lows again in February.

Detroit, Michigan was the only city with a positive monthly changeable, avoiding another new low, managing a +1.0 percent increase in February compared to the previous month. However, it is 30 percent below its 2000 price level.

According to the report, the 20-city group's index level of 139.27, virtually sets home prices back to its April 2009 trough value (139.26), while the 10-city group is 1.5 percent above its low.

Meanwhile, San Diego, California, which had posted 15 consecutive months of positive annual rates, ended its run with a -1.8 percent annual rate of change in February.

"There is very little, if any, good news about housing," said David M. Blitzer, Chairman of the Index Committee at S&P Indices."Prices continue to weaken, trends in sales and construction are disappointing."

Ten of the 11 cities that recorded index lows in January fell further in February, Blitzer added. Atlanta, Cleveland and Las Vegas join Detroit as cities with home prices below their 2000 levels; and Phoenix is barely above its January 2000 level after a new index low.

Recent data on existing-home sales, housing starts, foreclosure activity and employment confirm that the U.S. is still in a slow financial recovery. Existing home sales and housing starts rose in March, but remain close to recent lows.

In addition, foreclosure activity showed decreases in mortgage delinquencies in the fourth quarter of 2010, but are still close to historic highs. The nation and 34 states also registered a decline in their unemployment rates for March.

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