The S&P/Case Shiller U.S. National Home Price Index fell broadly during the third quarter of 2007, with home prices off 1.7% from the second quarter of the year and down 4.5% from third quarter, 2006.
"The declines in the national figure are notable for two reasons," said Robert J. Shiller, chief economist at MacroMarkets LLC, which compiles the index. "First, the third-quarter decline, at 1.7%, was the largest quarterly decline in the index's 21-year history. And, second, the year-over-year decline posted its second consecutive record low at -4.5%. Consistent with prior 2007 reports, there is no real positive news in today's data. Most of the metro areas continue to show declining or decelerating returns on both an annual and monthly basis."
Each of the 20 metro areas measured by the index were down in September from August, including the five that are still positive for the year--Atlanta, Charlotte, Dallas, Portland and Seattle. Tampa's year-over-year decline is the biggest, down 11.1%, followed closely by Miami, down 10%, Detroit, down 9.6% and San Diego, also down 9.6%. Eight other markets reported their lowest recorded annual returns, Atlanta, Chicago, Las Vegas, Miami, Minneapolis, Phoenix, San Diego, Tampa, and Washington D.C.
The index is based on a value of 100 assigned to single-family homes sold in Jaunary of 2000. As of the end of the third quarter, the raw index numbers for the individual markets were: Atlanta 135.59; Boston 170.73; Charlotte 135.13; Chicago 164.42; Cleveland 117.35; Dallas 125.44; Denver 138.43; Detroit 110.83; Las Vegas 213.47; Los Angeles 254.79; Miami 249.61; Minneapolis 163.45; New York 206.28; Phoenix 205.28; Portland 185.67; San Diego 222.82; San Francisco 206.46; Seattle 191.66; Tampa 210.14; and Washington 228.67.