(Feb. 24, 2009) U.S. single family home prices ended 2008 with record declines, continuing that trend for a second straight year, according to a leading index released today.

The Standard & Poors/Case-Shiller U.S. national home price index fell 18% in the fourth quarter of 2008 compared to the same period a year ago, the largest decline in the index's 21-year history.

The sharpest declines from the previous year were in Phoenix (down 34%), Las Vegas (down 33%), San Francisco (down 31%), Miami (down 29%) and Los Angeles, which includes Orange County, (down 26%).

Las Vegas, Phoenix, Miami and San Francisco home prices were down more than 40% from their market peaks, which occurred at different times. Los Angeles-area home prices ended 2008 down 37% from their late 2006 peak.

"Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines," said David M. Blitzer, chairman of the index committee at Standard & Poors.

The Case-Shiller index compares the sale prices of homes against their previous sales and corrects for factors that would alter a home's value, such as remodeling. Rather than state value with a dollar figure, an index number is used, with 100 representing January 2000 prices. The latest Los Angeles index number was 171.

via the Los Angeles Times
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