Housing prices still dropping fast: Standard and Poor's

Home prices continued to fall at record annual rates in January, according to the Standard & Poor's monthly report on U.S. home prices in major metropolitan areas.

The monthly S&P/Case-Shiller Home Prices Indices, the leading measure of U.S. home prices, reported that its 20-City Composite Home Price Index showed a record annual decline of 19 percent for the year ending in January 2009. Thirteen of the 20 metropolitan areas surveyed also set individual records for annual decline.

"Home prices, which peaked in mid-2006, continued their decline in 2009," said David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "There are very few bright spots 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 nine of the MSA's (Metropolitan Statistical Areas) falling more than 20 percent in the last year."

30 consecutive months of declines

The Index has been reporting consecutive annual declines since October 2007. The monthly data shows a similar trend, with 30 consecutive months of negative returns. Similar results have been reported for the company's 10-City Home Prices Index as well.

All 20 metro areas are reporting negative monthly and annual rates of change in average home prices. Seven metro areas also recorded a record monthly decline in January.

The three worst performing cities, in terms of annual declines, are from the Sunbelt, each reporting negative returns in excess of 30 percent. Phoenix was down 35.0 percent, Las Vegas declined 32.5 percent and San Francisco fell 32.4 percent. Dallas, Denver and Cleveland faired the best in terms of annual declines, down 4.9 percent, 5.1 percent and 5.2 percent., respectively.

Phoenix market down by nearly half

Phoenix has experienced the worst total decline, with prices falling almost 50 percent from their peak in June 2006. Dallas has fared the best in the economic downturn, with prices falling only 10.8 percent from their peak in June 2007.

Nine metropolitan areas have posted overall declines greater than 30 percent from their peaks, with Las Vegas, Miami, Phoenix, San Francisco and San Diego all posting declines in excess of 40 percent.

The S&P/Case-Shiller Home Price Indices are published on the last Tuesday of each month. They are constructed to accurately track the price path of typical single-family homes located in each metropolitan area provided.