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Economy in Brief

Case-Shiller Home Price Index Is Down By Nearly One-Third From 2006 Peak
by Tom Moeller May 26, 2009

The S&P/Case-Shiller Composite 20 Home Price Index fell 2.2% during March. The latest decline lowered prices by 18.7% during the last twelve months and by 31.4% since their peak in May 2006. The series dates back only to 2000 and the March decline in prices was as expected.

The S&P/Case-Shiller home price series can be found in Haver's USECON database and the city data highlighted below 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, also fell 2.0% and was down 18.6% year-to-year. The measure was down 32.4% since the 2006 peak.

Weakest Regions: Home prices in Phoenix, Nevada were quite weak and fell 36.0% y/y and in San Francisco prices fell 30.0% y/y, off by nearly one half from their early-2006 peak. Home prices in Las Vegas, Nevada fell 31.2% y/y and also were down by roughly one half from their peak. Prices in Miami fell 28.7% y/y while home prices in Los Angeles were down 22.3% y/y. In Tampa they fell 22.4% and in Detroit home prices dropped by 25.7% y/y, off 43.7% from the peak.

Less Weak Regions: In the Northeast, the decline in home prices continued less severe. Prices in New York fell 11.8% y/y, off 19.6% from their 2006 peak. Prices were down 8.0% year-to-year in Boston but in Chicago home prices were down a larger 18.6% y/y, off one-quarter from the 2007 peak. In Cleveland, Ohio the decline in home prices accelerated during February and they fell 1.0% m/m and 9.0% y/y but in Dallas prices were off by a moderate 5.5% y/y and by 9.1% from the 2007 peak. In Charlotte, North Carolina prices fell a moderate 9.3% y/y and in Denver home prices prices fell just 5.5% y/y.

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.

The history of the Case-Shiller data is available in Haver's USECON database.

Remarks made by Fed Chairman Ben S. Bernanke on Dealing With The Reality of Unpredictability are available here.

S&P/Case-Shiller Home Price Index (SA, Jan 00 = 100) March February Y/Y 2008 2007 2006
20 City Composite Index 141.35 144.48 -18.7% -15.8% -3.8% 7.6%
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