Standard & Poor’s released its S&P/Case-Shiller Home Price Indices today, which show the trend of broad based declines in existing home prices across the United States continued through the first half of 2008. The drop in the S&P/Case-Shiller U.S. National Home Price Index – which covers all nine U.S. census divisions – remained in double digits, recording a record 15.4 percent decline in the second quarter of 2008, versus the second quarter of 2007. This is larger than the decline of 14.2 percent reported in the first quarter of the year.
The 10-city and 20-city composites also set new records, with annual declines of 17 percent and 15.9 percent, respectively. However, S&P noted that the acceleration in decline was only moderate in June. The May figures saw annual declines of 16.9 percent and 15.8 percent, respectively. According to S&P, the national housing market peaked around June/July of 2006. As of June 2008, two years later, the 10-city composite has fallen by 20.3 percent and the 20-city composite is down 18.8 percent.

“While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level,” said David M. Blitzer, chairman of the index committee at Standard & Poor’s.
According to S&P, the markets that were the high-flyers during the recent real estate boom continue to be the ones that are leading the current decline. Las Vegas remains the weakest market, reporting an annual decrease of 28.6 percent, followed by Miami with -28.3 percent and Phoenix at -27.9 percent.
On the plus side, Denver and Boston were the best performing markets, returning +1.5 percent and +1.2 percent, respectively. Both these markets have had three consecutive months of positive returns. They are outdone by Charlotte and Dallas, however, which have recorded four consecutive months of positive returns.
S&P concluded that “although there are some improving regional numbers, the picture of the overall residential real estate market remains weak.”
Standard & Poor’s full press statement announcing its June home price indices can be viewed by clicking here. S&P’s historical home pricing data, spanning back twenty years, can be accessed here.