Case-Shiller: Home Prices Move Closer to 2009 Lows

Data released by ""Standard & Poor’s"":http://www.standardandpoors.com Tuesday show that home prices are continuing to slip across the country, with residential property values just slightly above their April 2009 bottom.

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Both the 20-city and 10-city composite readings of the latest ""S&P/Case-Shiller"":http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff--p-us home price index fell another 1.1 percent in February 2011 when compared to the previous month.

The 20-city composite is down 3.3 percent from its February 2010 level, while the 10-city posted a 2.6 percent drop from a year ago.

February marked the eighth straight month that the Case-Shiller readings have headed lower.

The latest declines were in line with market expectations. Economists were forecasting a drop in the 20-city index of just over 3 percent, largely due to the elevated level of distressed properties on the market, which according to the ""National Association of Realtors"":http://www.realtor.org sell at a median discount of about 20 percent.

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Washington D.C. was the only market to post a year-over-year gain with an annual growth rate of 2.7 percent. It’s the 15th straight month D.C. has been in positive territory, beginning in December 2009.

San Diego, which had posted 15 consecutive months of positive annual rates, ended its run with a 1.8 percent decline in February 2011 when compared to 12 months earlier.

Ten of the 11 cities that set new lows in January 2011 saw new lows again in February.

Detroit was the only one to avoid another new trough, managing a 1.0 percent increase in February over January and the only city with a positive monthly change. Still, home prices there are sitting at around 30 percent below their 2000 price levels, S&P reports.

Atlanta, Cleveland, and Las Vegas join Detroit as cities with home prices below their 2000 levels. Phoenix is just barely above its January 2000 level after a new index low.

By comparison, home prices in D.C. are more than 80 percent over the market’s January 2000 level. Other cities holding on to gains of more than 50 percent from 11 years ago include Los Angeles, New York, and San Diego.

Assessing the broader picture, S&P says with an index level of 139.27, the 20-city composite is virtually back to its April 2009 trough value (139.26), while the 10-city composite is 1.5 percent above its low.

“There is very little, if any, good news about housing. Prices continue to weaken, trends in sales and construction are disappointing,” said David M. Blitzer, chairman of the index committee at S&P Indices, adding that “The 20-city composite is within a hair’s breadth of a double dip.”