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Market Conditions
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Written by Peter Y. Hong, LA Times
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(March 31, 2009) U.S. home prices fell at a record pace in January, according to a leading national index released today.
The S&P/Case-Shiller index of 20 U.S. metropolitan areas was down 19% in January from the same month a year ago, the largest decline for that month on record.
Every one of the 20 metropolitan areas in the index showed a price decline in January from a year ago. Since peaking in 2006, the index now shows double-digit declines in all of the cities measured, and the overall 20-city index has fallen 29% from the peak.
The Los Angeles area, which includes Orange County, was down 39% from its peak in 2006. But the worst decline was in Phoenix, at 49%, and four other metro areas showed greater than 40% declines from their respective peaks: Las Vegas, Miami, San Francisco and San Diego.
Los Angeles area prices declined 26% in January from the previous year. The three sharpest January declines, however, were in Phoenix (35%), Las Vegas (33%) and San Francisco (32%).
The smallest annual drops for January were in Dallas, Denver and Cleveland, which all saw 5% declines.
Western states and Florida have had severe price declines due to heavy foreclosures, and those areas showed the greatest price increases during the real estate bubble.
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 prices in January 2000. The latest Los Angeles index number was 166.54. |
