Housing Prices Decline Sharply During July
Housing prices in the United States plunged a record 16.3 percent during July, compared with the previous year. According to Standard & Poor’s/Case-Shiller Home Price Indexes, this indicates an ongoing home-price decline now in its second year.
The S&P/Case-Shiller composite index of 20 metropolitan areas declined 0.9 percent in July, when compared with June. That represents a 19.5 percent decline since the housing boom peaked in July of 2006. According to S&P, the composite index of 10 metropolitan areas fell 1.1 percent in July, representing a 17.5 percent year-over-year decline. Compared with 2006, the index is down 21.1 percent.
“There are signs of a slowdown in the rate of decline across the metro areas, but no evidence of a bottom,” said David Blitzer, chairman of S&P’s index committee. Economists see declining home prices -as a result of foreclosures - as one of the biggest threats to America’s financial system and economic growth.
Declines on Las Vegas - the nation’s weakest housing market - hit 29.9 percent compared with last year, and 34.3 percent when compared with its August of 2006 peak, according to S&P. Yearly declines for Phoenix and Miami were 29.3 percent and 28.2 percent in July, respectively.
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