The latest Case-Shiller figures released by Standard & Poor’s (S&P) Tuesday signal home prices across the United States continue to weaken.
Through November 2010, the 10-city composite was down 0.4 percent and the 20-city composite fell 1.6 percent from their November 2009 levels. This gauge is the most closely watched housing numbers… and it signals a weaker year than many had hoped. This numbers… as well as more local supply – demand inventory level in Chicago make me believe that we are in a 3% decline across the board for housing in Chicago in 2011. Single family homes will hold the strongest position while the condo market will weaken more than free standing homes.
The 10-city composite index foretold that November was the sixth consecutive month where the annual growth rates moderated from their prior month’s pace, S&P noted. Only four of the 20 metropolitan areas included in the study – Los Angeles, San Diego, San Francisco, and Washington D.C. – showed year-over-year gains in November. Chicago did not fair as well.
Home prices fell in 19 of 20 major metros on a month-to-month basis. The only city with a gain in November was San Diego, up a scant 0.1 percent. Thirteen of the metropolitan statistical areas saw average home prices drop by 1.0 percent or more.
S&P’s analysts say a double-dip in home prices could hit the market by spring.
The two composite readings remain above their spring 2009 lows. However, eight markets – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland, Seattle, and Tampa – hit their lowest marks since home prices peaked in 2006 and 2007, meaning that average home prices in those markets have already fallen below their current cycle troughs.