November Home Prices in 20 U.S. Cities Fall 18.2% From Year Ago

[Joanne98]

Jan. 27 (Bloomberg) -- Home prices in 20 U.S. cities declined 18.2 percent in November from a year earlier, the fastest drop on record, as foreclosures climbed and sales sank.

The decrease in the S&P/Case-Shiller index was in line with forecasts and followed an 18.1 percent drop in October. The gauge has fallen started falling in January 2007, and year-over-year records began in 2001.

Record foreclosures have contributed to more than $1 trillion in losses worldwide that have prompted banks to shut off access to credit. While plunging values have made homes more affordable, they have also hurt household wealth, contributing to a slump in spending that’s likely to continue for the first half of the year.

“The decline has accelerated over the past few months due to the increase in deeply discounted foreclosure sales,” Michelle Meyer, an economist at Barclays Capital Inc. in New York, said before the report. “The decline in the housing market worsened markedly at the end of last year.”

Economists forecast the 20-city index would fall 18.4 percent from a year earlier, according to the median of 27 estimates in a Bloomberg News survey. Projections ranged from declines of 17.4 percent to 20 percent.


http://www.bloomberg.com/apps/news?pid=20601087&sid=axHhNHnGHY38&refer=home