metro areas showing record rates of annual decline, and 14 reporting declines in excess of 10% versus January 2008.
The middle left chart depicts the annual returns of the 10-City Composite and the 20-City Composite Home Price Indices. Following the lead of the 14 metro areas described above, the 10-City and 20-City Composites also set new records, with annual declines of 19.4% and 19.0%, respectively.
“Home prices, which peaked in mid-2006, continued their decline in 2009,” says David M. Blitzer, (top right photo) Chairman of the Index committee at Standard & Poor’s.
Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines, and nine of the MSA’s falling more than 20% in the last year.
The monthly data follows a similar trend, with the 10-City and 20-City Composite
showing thirty consecutive months of negative returns.”
The middle right chart shows the index levels for the 10-City Composite and 20-City Composite Home
Price Indices. As of January 2009, average home prices across the United States are at similar levels to what they were in late 2003.
All 20 metro areas are reporting negative monthly and annual rates of change in average home prices.
Seven metro areas and the 20-City Composite recorded a record monthly decline in January. In addition, seven metro areas (not always the same seven) reported declines in excess of 4% in the month of January alone.
Phoenix led with a report of -5.5%. Every MSA has had at least five consecutive months of decline, dating back to September 2008. On a marginally positive note Cleveland, Los Angeles and Las Vegas are reporting a relative improvement in year-over-year returns, in terms of lesser rates of decline than last month’s values.
Furthermore, Las Vegas, along with five other metro areas, showed a marginal
improvement in monthly returns, albeit still negative.
The three worst performing cities, in terms of annual declines, continue to be from the Sunbelt, each reporting negative returns in excess of 30%. Phoenix was down 35.0%, Las Vegas declined 32.5% and San Francisco fell 32.4%.
Dallas, Denver and Cleveland faired the best in terms of annual declines down
4.9%, 5.1% and 5.2%, respectively.
Looking at the data from peak-thru-January 2009, Dallas is the least hurt, down 10.8% from its peak in June 2007, while Phoenix is down 48.5% from its peak in June of 2006.
All of the 20 metro areas are in double digit declines from their peaks, with nine of the MSA’s posting declines of greater than 30% and five of those (Las Vegas, Miami, Phoenix, San Francisco and San Diego) in excess of 40%.
For more information, please contact:
David Blitzer, Chairman of the Index Committee, Standard & Poor’s, 212 438 3907
David Guarino, Communications, Standard & Poor’s, 1 212 438 1471