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| 1988-2007: 10 City Composite - added from 2002, 20 City Composite |
Data through December 2007, released today by Standard & Poor’s for its
S&P/Case-Shiller Home Price Indices, the leading measure of US home prices, show
broad based declines in the prices of existing single family homes across the
United States, marking 2007 as a full year of declining home prices.
The chart above depicts the annual returns of the U.S.
National Home Price, the 10-City Composite and the 20-City Composite Indices.
The decline in the S&P/Case-Shiller® U.S. National Home Price Index -- which
covers all nine U.S. census divisions -- neared double digits, posting -8.9%
versus the 4th quarter of 2006, the largest decline in the series 20-year
history.
During the 1990-91 housing recession the annual rate bottomed at -2.8%.
The 10-City Composite also set a new record, with an annual decline of 9.8%. In
December, the 20-City Composite recorded an annual decline of 9.1%.
"We reached a somber year-end for the housing market in 2007," says
Robert J. Shiller, Professor at Yale University and
Chief Economist at MacroMarkets LLC. "Home prices across the nation
and in most metro areas are significantly lower than where they were a year ago.
Wherever you look things look bleak, with 17 of the 20 metro areas
reporting annual declines and the remaining three reporting flat or moderate
growth rates. Looking closely at these negative returns, you will see that 14 of
the metro areas are also reporting record lows and eight are in double digit
decline. The monthly data paint a similar picture, with all metro areas now
reporting at least four consecutive negative monthly returns."
Miami remains the weakest market, reporting a double-digit annual decline of
17.5%, followed by Las Vegas and Phoenix at -15.3% each. In December, San
Francisco slipped into negative double-digit territory with an annual return of
-10.8%. Charlotte, Portland and Seattle are the only three MSAs still
experiencing positive annual growth rates; however, Seattle came in at only
+0.5%, an almost flat growth rate.
The table below summarizes the results for November 2007. The
S&P/Case-Shiller Home Price Indices are revised for the 24 prior months,
based on the receipt of additional source data. More than 20 years of history
for these data series is available, and can be accessed in full by going towww.homeprice.standardandpoors.com
