Home for saleThe U.S. housing sector received another dose of sobering news Tuesday, as home prices in 20 major cities fell a worse-than-expected 1.3% in October from September, on a non-seasonally-adjusted basis, according to the S&P/Case-Shiller U.S. National Home Price survey. That's the index's fourth straight monthly decline. Also, the 10-city index fell 1.2% in October compared to September.

Home prices in the 20-city index also fell 0.8% in October on a year-over-year basis. However, the 10-city index rose 0.2% in October on that basis. October's decline marked the first year-over-year drop for the 20-city index since January.

A Bloomberg survey had expected home prices in the 20-city index to fall 0.7% in October from September, and 0.2% on a year-over-year basis, after falling a revised 0.8% in September from August, and 0.6% year-over-year in September.

"There Is No Good News"

David M. Blitzer, chairman of the Index Committee at Standard & Poor's, said concerned about a double-dip recession in home prices is warranted. "The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October's report. Home prices across the country continue to fall." Blitzer said, in a statement.

"The trends we have seen over the past few months have not changed," he said. "The tax incentives are over, and the national economy remained lackluster in October, the month covered by these data. Existing homes sales and housing starts have been reported for both October and November, and neither is giving any sense of optimism."

In October, all 20 metropolitan statistical areas (MSAs) in the 20-city and 10-city indexes were down compared to September, Blitzer added. Further, while not always consecutive months, 12 of the MSAs and both indexes have posted at least six months' of decline since the beginning of 2010.

Monthly price drops in October in major U.S. cities were as follows: New York, 1.6%; Chicago, 2%; Boston, 1.2%; Washington, D.C., 0.2%; Atlanta, 2.9%; Tampa, 0.9%; Miami, 1.1%; Dallas, 1.1%; Denver, 0.6%; Los Angeles, 0.7%; San Francisco, 1.9%; and Seattle, 1.3%.

October's home price report is an unqualified negative. As the impact of the homebuyer tax credit waned, home prices have stagnated. The large inventory of unsold homes is likely to continue to place downward pressure on home prices at least through early 2011, and probably for longer. Until both existing- and new-home sales rise in a sustained way to lower those high inventories, home prices will keep struggling.

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imme534333

afrokrackharmon's vote is just as valuable as a normal person's vote.

December 29 2010 at 6:52 PM Report abuse rate up rate down Reply
cozypaws

The problem is don't buy a hpose if you can;t afford it.Its that simple.

December 29 2010 at 8:36 AM Report abuse +1 rate up rate down Reply
1 reply to cozypaws's comment
jkennedy806

No cozy paws, 50% of Americans have lost their jobs. They can't make the payments all the time. There is a program for that, but our friends the banksters who got bailed out on the taxpayer's dime don't want to work with the homeowner. 10 million people are out of work, and 8 million foreclosures. what does that tell you. It tells me that no one is buying houses, IN simple terms no one can afford anything.

December 29 2010 at 8:40 AM Report abuse rate up rate down Reply
jkennedy806

Let's put the blame where the blame needs to be, WALL STREET, THE TOO BIG TO FAIL BANKSTERS, AND WASHINGTON. Evenutually the banks are going to fail 98 banks failed already this year. Twice as many as last year. Allstate just sued CoutryWide/BofAmeria and Monzilla for trading toxic dervatives (CDO's). The suit claims that the dervatives were made to look attractive on the market even though the seller's, ratings companies, and the banks knew they were toxic. That's fraud people. And Collusion. For three years this administration Pres. B O and Washington have propped up these banksters, and let US go unemployed, Seniors without COLA"S for two years now, creeping high gas and food prices, it's time to stop complaining and do something. Come January 3rd on MOnday I am going to start a new resolution, I will either call or email my wonderful Fed. Senators Casey and Toomey and my Congressman Charlie Dent. On Tuesday, my state officials, and Wed. my local rep. And then start over again. 2011 is the year the US citizen takes back the country. Don't buy Chinese goods. or any foreign goods if you can -- I did not do any shopping at a mall this year, or Walmart.
I shopped in little Main Street stores. I supported a Mom and daughter who make the yummiest chocolates !!! It's time to stop the whine and do some time, at the computer and let those Washington nit wits know we HAVE HAD ENOUGH!!! You want to stop the housing crisis, put the banksters in jail, work with the underwater homeowner, cripes there are 400 programs out there, pick one or even two. Did you notice that for the two months this country was in foreclosure freeze the housing market creeped back. HELLO didn't anyone put this together. NO Coincidences.

December 29 2010 at 8:32 AM Report abuse +3 rate up rate down Reply
wc92264

This housing crisis had nothing to do with Obama.Wall Street Under the BUSH Administration leveraged their investment banking to over 30 to one.They encouraged the sale of homes and sold bogus mortgages in the form of derivitves they packaged and sold throughout the world.The major rating agencies were also complicit in this fraud by stamping these toxic derivitives AAA knowing they were bogus.Proof that Wall Street knew these derivitives were toxic was their purchase of Default Swaps from AIG hedging their losses on these bogus products.Goldman Sachs was one of the biggest violaters of this fraud and guess who was the CEO of this company prior to becoming the Secretary of Treasurer under BUSH.Yes one Hank Paulson.The same Hank Paulson that told us the sky was falling and bailed out his buddies 100 cents on a dollar with taxpayer funds.These criminals should be prosecuted but Obama like all politicians get campaign contributions from these banksters and therefore is not interested in exposing these fraudsters .

December 29 2010 at 8:21 AM Report abuse -1 rate up rate down Reply
1 reply to wc92264's comment
jkennedy806

And don't forget Timmy Geithner the other fox in the chicken house. Both Obama and McCain got money from the banksters. The banksers were playig both sides of the fence with their ill gotten $money$ It's all about the MOney OURS.

December 29 2010 at 8:36 AM Report abuse rate up rate down Reply
ump495

talking about driving the bus off the clif. well obamie mamie just got in the same bus and sped up. end results, we will crash sooner and at a faster rate. it amazes me as a 66 year old gentlemen that so many so-called americans cannot see what is going on in this country. simply amazes me. the countrys and times that i grew up in, i.e. 1940's/50's and early 60's were great great times.we were a superpower and a great nation. housing was inexpensive and build better. cars were the same. teachers where good and jobs were plentiful. unfortunately our better days are behind us and i am so so sorry that my kids and grand-kids will not experience half of what i did. they will come up in a european style of life starting with obamie care,. god help us, and not be able to afford much of anything. our country is doomed and its just a matter of time folks. thanks america for being the great country you once were and god bless you as you lay in rest. good bye and i will always remember and love you.

December 29 2010 at 7:47 AM Report abuse -1 rate up rate down Reply
ajallenky

Jobs are NOT coming back to the U.S. - 50% of the jobs lost were in the bloated construction industry, and everyone knows where that group is headed. The other 50% is in manufacturing where companies can produce the same products overseas for 10% of the LABOR costs in the U.S. - where would you locate your factory ??? I don't like it either, but, reality is reality. The ones who complain the most keep buying " made in China " from Wal-Mart to get a " bargin" - who doesn't want the best value for thier $. Until wages in the U.S come down to world levels we will CONTINUE to lose manufacturing jobs - isolationist tarriffs do NOT solve the problem - nor does pie-in-the-sky attempts to force business to stay in the U.S. by giving them tax breaks - just robbing one hand to pay the other - NO SOLUTION unless we get on a level playing field !!! Whine, stomp your feet, etc. - your politician will NEVER say this cause it's not popular and he/she would never get re-elected - THEY KNOW IT - that's why nothing has been done. The U.S. will become a second rate power very similar to Europe - one can see what their isolationist and unionization of every facet of public life with high taxes has gotten them !

December 29 2010 at 7:03 AM Report abuse +7 rate up rate down Reply
1 reply to ajallenky's comment
ump495

amen ajallenky i agree 100% our country is doomed on the track we are headed and our once great powerful industrial nation is on the way down. we can thank P's. J's and N's for this mainly... just the facts man just the facts.

December 29 2010 at 7:51 AM Report abuse rate up rate down Reply
larryeart

Housing prices went UP, up,up,up,up, 400%. Now they come down only 50%. So what. They are still HIGH and overpriced. Get over it.

December 29 2010 at 5:32 AM Report abuse +7 rate up rate down Reply
1 reply to larryeart's comment
ump495

and larryeart i hope you are as happy and cheerful about $5.00 a gallon gasoline as you are high housing cost. i guess time will tell. then again if you live in a 1940's trailer with a 7-11 near by, you wont need to buy gas will you..but then again i ask, do 7-11 cash disablity checks. hmmmm

December 29 2010 at 7:55 AM Report abuse -1 rate up rate down Reply
Mark

Nice job Obama - thanks for the "change"! The news just keeps getting better and better every day! (that was sarchasm for those of you who did not recognize it...lol)

December 29 2010 at 5:32 AM Report abuse +2 rate up rate down Reply
ssyankeeclipper

housing is still way overpriced, either prices go down or wages go up and of course the unemployment doesn't help,if the industries really wanted to help they should also offer much lower interest rates but as we all see banks will sit on these properties till they crumble knowing they won't lose a dime once they deduct their loses and bail out,s with our money

December 29 2010 at 5:15 AM Report abuse +4 rate up rate down Reply
skipper864

The tax credit inflated prices to the point that many who took advantage of the "deal" are already underwater on their mortgage, since prices fell when the credit ended.

December 29 2010 at 3:53 AM Report abuse +4 rate up rate down Reply