In another piece of economic data that can be filed under the heading “Less Bad,” the S&P 500 Case-Shiller Home Price Index showed a 10th consecutive month of improvement in November 2009. But “improvement” is a relative term. The reading still showed a decline in home prices.
The annual returns of the 10-City and 20-City Composite Home Price Indices declined 4.5% and 5.3%, respectively, in November compared to the same month last year. All 20 metro areas and both Composites showed an improvement in the annual rates of decline with November’s readings compared to October.
“While we continue to see broad improvement in home prices as measured by the annual rate, the latest data show a far more mixed picture when you look at other details.” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Only five of the markets saw price increases in November versus October. What is more interesting is that four of the markets—Charlotte, Las Vegas, Seattle and Tampa—posted new low index levels as measured by the past four years. In other words, any gains they might have seen in recent months have been erased and November is now considered their current trough value. On the flip side, there are still some markets that continue to improve month-over-month. Los Angeles, Phoenix, San Diego and San Francisco have seen prices increase for at least six consecutive months. Looking at the annual figures, four markets – Dallas, Denver, San Diego and San Francisco – have finally entered positive territory, something we really haven’t seen in at least two years in most markets.”
And here is the most important quote from Mr. Blitzer: “On balance, while these data do show that home prices are far more stable than they were a year ago, there is no clear sign of a sustained, broad-based recovery.”
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Gregg D. Killoren
victoria1014
