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Home Prices Still Falling

In October metro Atlanta may have experienced the nation’s steepest month-over-month decline in housing prices, but the largest year-over-year drop belongs to Chicago, according to the most recent S&P Case-Shiller Index released Tuesday

Prices continued to fall in October, following a trend that started in August, according to the non-seasonally adjusted numbers. According to the index, Atlanta prices fell 6.19 percent when compared to October 2009 and 2.9 percent when compared to last month.

In Chicago, the non-seasonally adjusted index fell 6.48 percent when compared to the same time last year and 1.99 percent compared to last month.

Nationally the 20-city index fell 1.32 percent month-over-month and .80 percent year-over-year.

In metro Atlanta, housing prices have recessed to May 2000 levels. According to the index, which follows properties sold over time rather than individual home sales, a home purchased in January 2000 is worth about the same amount today as it was at then.

While this is not good news for the region, it is not all bad. While the 6.19 percent year-over-year loss takes Atlanta to its lowest index level in a decade, the decline does not represent the metro area’s largest drop since the housing boom. From April 2008 to October 2009, the metro area saw the seasonally adjusted index decline between 7.7 percent and 15.17 percent.

The index declines also continue to remain mild compared with the National Association of Realtors single-family home sales reports. The Realtors’ results, which are based on monthly closings and produce a median price, showed a 16.2 percent price drop in the metro area for October from a year earlier.The next major assessment comes Jan. 20, when the National Association of Realtors releases its home price report for December, followed by its quarterly metro home price report on Feb. 10.
Article from the Atlanta Journal constitution 12/28/10

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