Home prices slow their decline

According to the S&P Case-Shiller home-price indexes, U.S. home prices decreased at a slower annual rate in October, but prices were flat compared to September.


The indexes showed prices in 10 major metropolitan areas fell 6.4% in October from a year earlier, while in 20 major metropolitan areas, home prices dropped 7.3% on the year. However, both indexes were flat in October compared with the previous month. All 20 major metropolitan areas again posted declines from a year earlier, the 19th time in a row.


Las Vegas continued to be hit the hardest, remaining the one market that has not seen a glimmer of hope so far this year. Prices have declined there for 38 consecutive months. While the composite indexes were flat month-over-month, two areas -- Phoenix and San Francisco -- had greater than 1% growth.

As of October, the 10-city index is down 30% from its mid-2006 peak, and the 20-city is down 29%. Nationally, home prices are at levels similar to the autumn of 2003. Month-to-month gainers were led by Phoenix which posted a 1.3% gain, and San Francisco, which rose 1.2%. Tampa fared worse, falling 1.6%.

Las Vegas again was the worst performer year-over-year, which posted a drop of 27%. Phoenix and Tampa followed with declines of 18% and 15%, respectively. The best year-on-year performer was Denver, which posted a 0.1% decline. David M. Blitzer, chairman of S&P's index committee, said the data, best described as flat overall, will likely "spark worries that home prices are about to take a second dip" as the come after a series of solid improvements.