Case-Shiller Index Falls Again in Novemer

The monthly S&P/Case-Shiller Home Price Indices for the month of November were released this morning, and the results were worse than expected. The annual decline in home prices in the 10- and 20- metropolitan regions measured by the indices fell -3.6% and -3.7%, respectively. A median forecast had predicted a drop of -3.3% in the 20-city index. For just the month of November, home prices fell in both indices by -1.3% compared with October prices.

In the 20-city Case-Shiller index, the one-year decline in Atlanta was worst, at -11.8%, followed by Las Vegas at -9.1% and Chicago at -5.9%. The only city posting a one-year price gain in November was Washington, D.C., up 0.5%.

Only one city, Phoenix, posted a month-over-month gain in November, and that gain was just 0.6%. The largest decline month-over-month came in Chicago, at -3.4%, with Atlanta falling -2.5% in the month.

If there’s a bright spot here, it is that falling house prices appear to be attracting more buyers, but until data is available on how many new purchases actually close, enthusiasm in the homebuilding sector may be stronger than the evidence warrants.