New HPI Measurement: Home Prices Going Nowhere Fast

Mortgage & Real Estate

Home prices barely moved in August on a sequential basis, but compared to a year ago values declined 3.8%, according to new figures compiled by Standard Poor’s Corp.

The Standard Poor’s/Case-Shiller house price index inched up just 0.2% in August but managed to post its fifth consecutive monthly gain.

Overall, values are down 31% from their 2006 peak and it likely will take years before a true recovery is in sight.

According to the latest measurement, today’s prices match values established back in mid-2003 levels. (In March, values were at mid-2002 levels.)

Although the new results were not particularly encouraging, SP’s index committee chairman David Blitzer pointed out that the Midwest “really stands out in terms of recent relative strength.  Chicago, Detroit and Minneapolis have all posted very sharp monthly increases going back to May.”

In contrast, the August HPI report shows that prices in Atlanta and Las Vegas have fallen 6.3% and 5.8% respectively, since August 2010.

Daily Briefing | Tuesday, October 25, 2011

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