Tuesday, February 24, 2009

Case-Shiller: House Prices Decline Sharply in December

by Bill McBride on 2/24/2009 09:00:00 AM

Both the monthly indices (20 cities and 2 composites) and the quarterly national index were released this morning. I'll have more on the national index shortly.

Here is the S&P/Case-Shiller monthly Home Price Indices for December.

Case-Shiller House Prices Indices Click on graph for larger image in new window.

The first graph shows the nominal Composite 10 and Composite 20 indices (the Composite 20 was started in January 2000).

The Composite 10 index is off 28.3% from the peak.

The Composite 20 index is off 27.0% from the peak.

Prices are still falling, and will probably continue to fall for some time.

Case-Shiller House Prices Indices The second graph shows the Year over year change in both indices.

The Composite 10 is off 19.2% over the last year.

The Composite 20 is off 18.5% over the last year.

These are the worst year-over-year price declines for the Composite indices since the housing bubble burst, although only slightly worse (on a year-over-year basis) than November.

The following graph shows the price declines from the peak for each city included in S&P/Case-Shiller indices.

Case-Shiller Price Declines In Phoenix, house prices have declined more than 45% from the peak. At the other end of the spectrum, prices in Charlotte and Dallas are only off about 9% from the peak.

Prices fell at least 1% in all Case-Shiller cities in December, with Phoenix off 5.1% for the month alone!

I'll have more on prices including the National Index soon.