Thursday, November 25, 2010

U.S. Home Prices Drop By 3.2 Percent in First Quarter

U.S. Home Prices Drop By 3.2 Percent in First Quarter According to official reports, a quarterly S&P/Case-Shiller report on home prices showed U. S. home prices dropped by 3.2 percent in the first quarter of 2010.


It has been reported that prices remain higher than a year ago, but 13 of 20 metropolitan areas covered in the report showed declines from February to March, as did both the 20-city and 10-city composite indexes used in the price study.


The report said that overall, first quarter figures “indicate some weakness in home prices.”





The report further said that behind the numbers, the housing market has been influenced by the April 30 cessation of a federal tax credit for home buyers and by climbing foreclosure rates.


David Blitzer, chairman of the Standard & Poor’s Index Committee, said, “The housing market may be in better shape than this time last year; but, when you look at recent trends there are signs of some renewed weakening in home prices.”


In the larger, 20-city composite index, prices dropped 0.5 percent from February to March although the index rose 2.3 percent compared to a year ago.


It was also reported that looking at the extremes over the past 12 months, prices have fallen 12 percent in Las Vegas, but risen 16.2 percent in San Francisco.


Declines were shown by ten cities from a year ago while 10 others showed higher prices.

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