American House Prices, 5yrs, 30pc and Still Falling
29 November 2011
Some 5 years after the financial crisis began and US house prices, now down 31% from their peak are still falling. Not only that, according to the latest data prices fell faster than economists' predictions in September. This comes at a time when it dashes hopes that the market may be recovering, not to mention what it does for hopes for the wider economy in 2012.
According to the well respected S&P Case-Shiller 20-city home price index, prices were down 3.6% year on year in September, following a 3.8% year on year decline in August. This is much higher (in house price terms) than the 3% decline predicted by a Bloomberg survey. The index was relatively unchanged month on month.
David Blitzer, chairman of the S&P’s index committee, said that “any chance of a sustained recovery will probably need a stronger economy”.