Minneapolis Home Price Decline Makes History

andard & Poor's/Case-Shiller U.S. National Home Price Index recorded a 19.1% year-over-year decline in the first quarter of 2009 – the largest decline in the series' 21-year history. The 10-City and 20-City Composites recorded annual declines of 18.6% and 18.7%, respectively, according to index data. These are slight improvements from their returns reported for February, and the second month since October 2007 when the composites did not post a record annual decline. "Declines in residential real estate continued at a steady pace into March," says David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "All 20 metro areas are still showing negative annual rates of change in average home prices, with nine of the metro areas having record annual declinesâ�¦Based on the March data, however, we see no evidence that that a recovery in home prices has begun. The index finds that 17 areas recorded a monthly decline in March, with Minneapolis, Detroit and New York posting record monthly declines. Minneapolis' 6.1% monthly decline represented the largest decline of any metro area in the history of the indices. In terms of annual declines, the three worst-performing metro areas continue to be the same three from the Sunbelt, each reporting negative returns in excess of 30%: Phoenix was down 36.0%, Las Vegas declined 31.2% and San Francisco fell 30.1%. Denver, Dallas and Boston continue to fare the best in terms of annual declines, down 5.5%, 5.6% and 8.0%, respectively. As of March, average home prices across the U.S. were at similar levels to what they were in the fourth quarter of 2002. From the peak in the second quarter of 2006, average home prices are down 32.2%, S&P/Case Shiller says. SOURCE: S&P/Case


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