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Economy in Brief

Case-Shiller Home Price Index Fell A Record 18.5% Last Year
by Tom Moeller  February 24, 2009

The S&P/Case-Shiller 20 Home Price Composite Index fell 2.0% during December, the third such decline in three months. That pulled prices down 18.5% during the last twelve months and by 26.7% since their peak in May 2006. The series dates back only to 2000. The December decline in prices was expected.

The S&P/Case-Shiller home price series can be found in Haver's USECON database but the city data is in the REGIONAL database.

The Case-Shiller index of 20 U.S. cities and their surrounding areas is weighted to reflect price changes due to extensive remodeling, home additions or extreme neglect. For example, smaller weights are assigned to sales of homes that have undergone extensive remodeling.

The Case-Shiller composite index of homes in 10 metropolitan areas, which has a longer history and dates back to 1987, fell 1.8% during December and was down 19.2% year-to-year. The measure was down 28.2% since the 2006 peak.

Weakest Regions: Home prices in Phoenix, Nevada were quite weak last year and fell 34.0% y/y and in San Diego prices fell 24.8% y/y, off 39.1% from their early 2006 peak. Home prices in Las Vegas, Nevada fell 39.1% y/y and were down 44.1% from their peak. Prices in Miami fell 28.8% y/y last year while home prices in Los Angeles were down 26.4% y/y. In San Francisco home prices were off 31.2% year-to-year. In Tampa they fell 22.0% last year and in Detroit home prices fell by 21.7% y/y.

Less Weak Regions: In the Northeast, the decline in home prices continued less severe. In New York, prices fell 9.2% last year, off 15.2% from their 2006 peak. Prices were down 7.0% year-to-year in Boston. In Dallas prices also were off by a modest 4.2% y/y and by 7.1% from last year's peak. In Charlotte, North Carolina they fell a moderate 7.1% y/y and in Denver home prices were off 4.0% y/y. In Cleveland, Ohio prices were off 6.1% y/y but in Chicago home prices were down a larger 14.3% y/y, 18.5% from the 2007 peak.

The latest press release from Standard & Poor's can be found here.

An overview of the S&P/Case-Shiller home price series can be found here.

Chairman Ben S. Bernanke's Semiannual Monetary Policy Report to the Congress is available here.

S&P/Case-Shiller Home Price Index (NSA, Jan 00 = 100) December November Y/Y 2008 2007 2006
20 City Composite Index 150.99 154.04 -18.5% -15.7% -3.8% 7.6%
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