By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Home prices in 20 major U.S. cities fell 1.0% in December compared with November, the fifth consecutive monthly decline after a tax incentive expired, according to data released Tuesday.
The non-seasonally-adjusted Case-Shiller home price index showed prices rose in just one city, Washington D.C., as 2010 came to a close.
“We ended 2010 with a weak report. Despite improvements in the overall economy, housing continues to drift lower and weaker,” said David Blitzer, chairman of the index committee at Standard & Poor’s.
The 20-city index is only 2.3% above its April 2009 trough.
On a seasonally adjusted basis, prices fell 0.4% in December.
Prices have moved down 2.4% in the past year following a 1.6% decline in the prior month. Compared with a year ago, prices were lower in 18 of the 20 cities. Prices increased only in San Diego and Washington D.C. Read the full report.
“The enormous supply overhang of existing homes, particularly factoring in all those in foreclosure or soon to be, promises to keep pressure on prices for some time,” said Josh Shapiro, chief U.S. economist at MFR Inc.
Analysts said high unemployment and uncertainty about the strength of the economy continued to cast a shadow over the housing sector.
A quarterly index covering the entire nation showed home prices fell 3.9% in the fourth quarter compared with the third.
The S&P/Case-Shiller index is based on a three-month moving average of home prices. So the December data reflects price data for October, November and December. This makes the index less volatile that other government housing price data.
In ascending order, here’s how each of the 20 cities fared over the past year.
Detroit, down 9.1%; Phoenix, down 8.3%, Atlanta, down 8.0%, Portland, down 7.8%; Chicago, down 7.4%; Tampa, down 6.2%, Seattle, down 6.0%, Minneapolis, down 5.3%; Las Vegas, down 4.7%; Charlotte, down 4.4%, Cleveland, down 4.0%, Miami, down 3.7%; Dallas, down 3.6%; Denver, down 2.4%; New York, down 2.3%; Boston, down 0.8%; San Francisco, down 0.4%; Los Angeles, down 0.2%; San Diego, up 1.7%; and Washington D.C., up 4.1%.
