MW: U.S. home prices at post-crisis lows: Case-Shiller
By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — U.S. home prices in December fell to their lowest level since the housing crisis, as an uptick in activity isn’t yet being matched by rising values, according to a closely followed index released Tuesday.
The S&P/Case-Shiller 20-city composite fell 1.1% in December, to wrap up 2011 with a 4% downturn. The index hasn’t been this low since February 2003 and has dropped 33.8% from its peak.
In December, every city measured but Phoenix and Miami saw price declines. Atlanta, Las Vegas, Seattle and Tampa each recorded new lows.
“In terms of prices, the housing market ended 2011 on a very disappointing note,” says David M. Blitzer, chairman of the Index Committee at S&P Indices.
“The pickup in the economy has simply not been strong enough to keep home prices stabilized. If anything it looks like we might have re-entered a period of decline as we begin 2012.”
The data on house prices contrasts with recent reports on activity, possibly showing that the low prices are actually spurring more home sales. Green shoots or false dawn in housing?
The big unknown for the housing market is the level of so-called shadow inventory, which are the unsold homes that big banks, Fannie Mae and Freddie Mac own but haven’t put on the market as well as soon-to-be foreclosed houses.
