Sept S&P/Case-Shiller Home Price Index fell 4.9% y/o/y, the biggest drop
since the data began in 1988 — but in-line with expectations. It’s the
9th straight month of declines. Lower house prices will help to clear out excess inventories (a lot much more than rate cuts).
Here’s the money quote from Shiller:
"The declines in the national figure are notable for two reasons. First, the 3rd quarter decline, at 1.7%, was the largest quarterly decline in the index’s 21-year history. And, second, the year-over-year decline posted its second consecutive record low at -4.5%. Consistent with prior 2007 reports, there is no real positive news in today’s data. Most of the metro areas continue to show declining or decelerating returns on both an annual and monthly basis.
All 20 metro areas were in decline in September over August. Even the five metro areas that still have positive annual growth rates — Atlanta, Charlotte, Dallas, Portland and Seattle — show continued deceleration in returns."
Here’s the metro overview:
S&P/Case-Shiller Index Release – September 2007 Index
Table courtesy of Tradition Financial Services, Inc. / TFS Derivatives
S&P/Case-Shiller Home U.S. National Home Price Index Posts a Record Annual
Decline in the 3rd Quarter of 2007
S&P, Nov 27, 2007 09:00 AM EST PDF