Standard & Poor's Tuesday morning reported a record year-over-year decline of 18.2% in the S&P/Case Shiller Home Price Indicies during the fourth quarter of 2008. Prices fell 7.2% from third quarter to fourth quarter, 2008.
Home prices at the end of December had fallen to third-quarter 2003 levels, S&P said. From the peak in the second quarter of 2006, average home prices are down 26.7%.
The 10-City and 20-City Composite Indices also set new records, with annual declines of 19.2% and 18.5%, respectively. All 20 metro areas reported negative monthly and annual rates, On a monthly basis, the 10-City Index fell 2.3% in December after falling 2.2% in November; the 20-City Index fell 2.5% in December after posting a 2.3% decline in the previous month.
Phoenix led the declines, with a 5.1% month-to-month drop and a 34% drop on an annual basis. Las Vegas continued its plunge, down 4.8% month to month and down 33% year over year. Minneapolis was down 4.6% for the month but was off a relatively mild 18.4% year over year. San Francisco continued to tank, off 3.8% for the month and 31.2% for the year. Los Angeles and San Diego were off 2.5% and 2.1% respectively on a monthly basis and down 26.4% and 24.8% respectively compared to December, 2007.
The two Florida markets, Miami and Tampa, were off 2.7% and 3.0% monthly and 28.8% and 22.0% annually, respectively. Detroit was down another 3.0% monthly and 21.7% annually, with home prices at 80.93% of what they were in January, 2000.
"The broad downturn in the residential real estate market continues," said David M. Blitzer, Chairman of the Index committee at S&P. "There are very few, if any, pockets of turnaround that one can see in the data. Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines, and eight of those MSA's now with negative rates exceeding 20%."