Case-Shiller: Home Prices in Big Cities Hit Lowest Level Since Housing Bust

Home prices in a majority of major U.S. cities tracked by a private trade group have fallen to their lowest levels since the housing bubble burst.

The Standard & Poor's/Case-Shiller index fell in December from November in all but one of the 20 cities it tracks. The 20-city index declined 1 percent.

The only market to see a gain was Washington, D.C.

Eleven of the markets hit their lowest point since the housing bust, in 2006 and 2007: Atlanta, Charlotte, N.C., Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Ore., Seattle and Tampa, Fla.

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The damage from the real estate bubble now spreads well beyond Las Vegas, Phoenix and Miami, which built frantically during the mid-2000s. In many places, prices are expected to keep falling for at least the next six months.

"Unlike the 2006 to 2009 period when all cities saw prices move together, we see some differing stories around the country, said David M. Blitzer, chairman of the Index Committee at Standard & Poor's.

Some of the worst declines are in cities hit hard by foreclosures, which are forcing prices down. Many people are holding off making purchases because they fear the market hasn't hit bottom yet.

The housing recovery is uneven across the United States, with coastal cities in California and the Northeast faring much better than the Midwest and Southeast. One exception is Dallas, which has avoided some of the big losses seen elsewhere.

The Case-Shiller report measures home price increases and decreases relative to prices in January 2000 and gives an updated three-month average for the metropolitan areas it looks at.

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Detroit has been hit bard, everhone knows that, rkght?Actually, nltquite. thefe afesectons of the city, lie in south east near belle island that holds its value, Indian Village. A turn of the century development, it was home to the auto barons and the city's old money. The Dodge mansion had sold a few years ago for $1.1 million. More recenttly, the Edsel Ford 'honeymoon cottage' was on market for half that and did not sell. Then there is N. RosedalePark, Palmer Woods, etc. Wuality is often found in city settings, not those plastic palaces and vinyl villages in the outer suburbs!

March 25 2011 at 11:14 PM Report abuse rate up rate down Reply

It used to be, before this crazy up then down market, that one had to have at
least 25% down payment and your monthly payment could not exceed one weeks gross
pay. Then along came Bill Clinton forcing banks to make maotgages affordable by
NOT requiring down payments or having income verifacation. This is what drove
up the market prices. People that had no idea of what it takes to buy a home by
saving for it nor any clue of what it takes to maintain a house were no being
"qualified" by greedy realtors and bankers. The proverbial sh*t had to hit the
fan sooner or later and now comes the hard clean up.

February 23 2011 at 1:54 AM Report abuse +1 rate up rate down Reply
1 reply to kalelreg's comment

Made this one up big time. One of the cornerstone of the Bush Admin was to increase home ownership (along with finding weapons of mass destruction in Iraq). That and deregulating financial markets. It was the conservatives' belief in free markets that you now call "greedy realtors and bankers" that led to this fiasco. But keep making things up and avoiding the truth. It will set you free just like it set the housing and financial markets free. You'll get yours too.

February 23 2011 at 7:46 AM Report abuse rate up rate down Reply

If you and you and YOU continue to buy Imported products YOU will continue giving our jobs and our nation's wealth away___home prices and wages are guarantee to continue to fall___when we are not loyal and patriotic enough to try our best to but made in the USA items.

February 22 2011 at 11:41 PM Report abuse +2 rate up rate down Reply

Please do not blindly follow these grand statistical pronuncements. I have been an appraiser in South Florida for 17 years. Every major real estate market has several sub-markets which are affected differently depending on many factors. Here in Miami, most sub-markets have been relatively stable over the last twelve months. There are still some fluctuations due to remaining REO and Short sale activity, but by and large, most areas have been stable. There are sections, Downtown Miami Condos or overbuilt areas in south west Miami-Dade, which were severely overbuilt and are still declining but even those are showing signs that they may have bottomed out. This is true for any real estate market in America. Is the market slower? Have markets declined since peak pricing? obviously!!! But to lump an entire city into one data set and pretend to determine price trends without accounting for neighborhood boundaries, locational differences, etc. is just flat out wrong. The frustrating thing is that every so often Case-Shiller or S&P or RealtyTrack issue these grandiose pronouncements and meanwhile all of us who have been appraising for years are wondering where the hell they get their numbers from. We are crunching statistics every day of the week and the evidence is just not there to support what they are saying. There is still a long road ahead and many markets will never return to 2007 pricing, but to keep misleading the public with questionable statistics serves no purpose. Michael Gannon, one of the most well respected appraisers in South Florida challenged Case-Schiller on their numbers and they could not credibly support their data. The real estate market is bad enough as it is without these people continuously scaring the public and undermining the fragile stabilization we have achieved in the last year. As for the predictions for the coming year, that is complete idiocy. Anyone suggesting they can predict what the market will do in the future is just full of crap. Let's not forget that it is these very same people that predicted that prices would continue to appreciate during the bubble and we all know how well that went.

February 22 2011 at 10:55 PM Report abuse -2 rate up rate down Reply
1 reply to usurarshop's comment

Robert Shiller, Peter Schiff, and Jim Rogers are just a few who 100% accurately predicted the collapse of the housing bubble and thank God I listened to them and not people like you. They were not "full of crap" as you suggest. These men used real data and facts for their predictions, sorry if that doesn't work for you, it usually doesn't for con artists. Too bad that so many people listend to spinsters like you before the bubble burst, they are now paying a huge price for that. Your quote: "The real estate market is bad enough as it is without these people continuously scaring the public..." Are you saying it's better to lie to the public that things are stabilizing (they're not) and let them be the greater fool for buying an overpriced house? Wow, can I have your business card so I can warn people about you? The free market will determine the true value of a house, not anything you say or even any of the numbers that Case-Shiller publish. When homes become truely afforadable again, demand will equal supply, and they will sell, period. We aren't there yet, and yes that is a prediction, so go ahead and call me full of crap but I've done very well the last 10 years or so with my predictions, based on real data and facts. I'll also stick with those who have a track record of being right and honest, not you with your realtor propaganda garbage. So keep using words like "grandiose pronouncements" or "fragile stabilization" or "idiocy" and "crap", it won't convince anyone of anything, at least anyone with half a brain.

February 23 2011 at 1:03 AM Report abuse +3 rate up rate down Reply

high oil prices, high consumer good prices, high health care insurance premiums.......rigid mortgage loan qualifications. wall street/bankers had a lot to do with this mess as did the bush administration.

February 22 2011 at 10:52 PM Report abuse +2 rate up rate down Reply
1 reply to kafienkarl's comment

im not so sure

March 15 2011 at 8:44 AM Report abuse rate up rate down Reply

it's been predicted by some economists would could see 2 million foreclosure this yr. There are several variables causing this: MUCH tighter loan requirements, lack of consumer confidence, other consumer goods are rising quickly in cost......oil and health care insurance. People are n't spending in a consumer based (70%) economy.....NO spending No economy. Obama's fault no not really...the Great Recession was handed to him and only a few yrs. ago oil was $147 a barrel.

February 22 2011 at 10:47 PM Report abuse +1 rate up rate down Reply

Prices will turn around in 6 months? What real estate agent has the author been listening to? Try 6 years - or maybe 60 years. Our economy is in the toilet - and there are plenty of possible, even probable, events on the horizon that could push that handle and flush the whole damn thing down the sewer.


February 22 2011 at 9:53 PM Report abuse +2 rate up rate down Reply

Gotta love the Government sponsored 1st time home buyer credit of $8,000.00 that expired last year. What a stroke of Genius. Here we are in the throes of a mortgage meltdown, and they think by giving a first time buyer $8k it will jump start the market. Hey Einstein's, if you actually need $8K to make the decision or buy a house, you probably shouldn't be buying a home. Just a thought.

February 22 2011 at 9:40 PM Report abuse -2 rate up rate down Reply
2 replies to kfogs1957's comment

it did help the housing market but they couldn't keep the program going. the government can't do everything the Banks and the private sector need to figure it out since they caused it ie. AIG and the Bankers

February 22 2011 at 10:49 PM Report abuse rate up rate down Reply

The $8000 home buyer credit was an enormous help to the plummeting market. It helped jumpstart a market that was absolutely dead and we would have lost billions more in declining values without it. Banks sitting on billions of taxpayer funded money were just simply not lending. If you want to criticize something, I suggest you take it out on the deregulation that enabled all the criminality on Wall Street and the Banks who then turned around, foreclosed on people and then dumped the properties at 30 cents on the dollar because they are insured and then wrote off the loss (all at taxpayer and homeowner's expense.) Who cares if they made the real estate crash worse while doing this? The government's $8000 credit was one of the very few positive things they have done while failing miserably at prosecuting these Wall Street crooks and holding Bankers accountable for destroying the market.

February 22 2011 at 11:06 PM Report abuse +1 rate up rate down Reply

Many mortgages in recent years were made to people whose qualifications could NOT even gotten them an interview with a banker--20 yrs. ago. Then Greenspan, Rubin, Sommers, Levitt conspired to provide a home for every family--with or without adequate income. Those days are gone (at least for a while) & those that lost jobs & then homes are OUT OF the MARKET---so there may NEVER be a return to where we were----HOPEFULLY NOT!

February 22 2011 at 9:19 PM Report abuse +2 rate up rate down Reply

Dearest AOL can't you decide which story to print? As I recall over the weekend you published a report that "MOST HOUSING PRICES IN THE COUNTRY HAVE STABLIZED" and that is good news for sellers and that buyers should start moving in on the deals while that still can........

February 22 2011 at 8:43 PM Report abuse +2 rate up rate down Reply