S&P Case-Shiller Home Price Index Indicates a Double-Dip
Data for the first quarter of 2011 has just been released for the S&P Case Shiller Home Price Index, and it’s not pretty. Prices dropped another 4.2% from the last quarter of 2011. It fell 3.6% in that 2010 final quarter. This first quarter 2011 number is a post recession low, and the annual decline was 5.1% from the first quarter of 2010. That’s a pretty clear double-dip for home prices.
19 of the 20 metropolitan areas tracked were down, with only Washington, D.C. showing a 1.1% increase. It was also the only metropolitan area that showed an annual increase, which was 4.3%. In March 2011, twelve cities hit new index lows:
The short rebound in prices in 2009 and 2010 is attributed to the home buyer tax credit. If the results of the credit are excluded, there has been no recovery or even stabilization in home prices during or after the recession. While most areas are around their 2002 price levels, Atlanta, Cleveland, Detroit, and Las Vegas are now showing average home prices below their 2000 levels.
Data for the first quarter of 2011 has just been released for the S&P Case Shiller Home Price Index, and it’s not pretty. Prices dropped another 4.2% from the last quarter of 2011. It fell 3.6% in that 2010 final quarter. This first quarter 2011 number is a post recession low, and the annual decline was 5.1% from the first quarter of 2010. That’s a pretty clear double-dip for home prices.
19 of the 20 metropolitan areas tracked were down, with only Washington, D.C. showing a 1.1% increase. It was also the only metropolitan area that showed an annual increase, which was 4.3%. In March 2011, twelve cities hit new index lows:
-Atlanta
-Charlotte
-Chicago
-Cleveland
-Detroit
-Las Vegas
-Miami
-Minneapolis
-New York
-Phoenix
-Portland
-Tampa
The short rebound in prices in 2009 and 2010 is attributed to the home buyer tax credit. If the results of the credit are excluded, there has been no recovery or even stabilization in home prices during or after the recession. While most areas are around their 2002 price levels, Atlanta, Cleveland, Detroit, and Las Vegas are now showing average home prices below their 2000 levels.