The Case-Shiller index of housing prices has continued to show declines in the major housing markets:
NEW YORK (CNNMoney.com) — An index of home prices in 20 major metropolitan areas fell at a record annual pace in November, to levels not seen since 2004, according to a report released Tuesday.
The S&P Case-Shiller Home Price Index, a sampling of 20 cities from across the nation, fell a record 18.2% over the 12 months ended Nov. 30. That brought the index to its lowest point since February 2004. From its peak in mid-2006, the index has plunged a whopping 25.1%.
Eleven of the 20 cities showed record declines, and the 12-month price drop for 14 of the cities was a double-digit percentage.
Phoenix, Las Vegas, and San Francisco all showed decreases of more than 30% with Miami, Los Angeles, and San Diego all showing decreases of more than 25% in 2008. The ten cities showing the greatest declines were in just four states: California, Arizona, Nevada, and Florida. In Chicago housing prices declined by 12.5%.
I continue to believe that the data support my claim: this is a local problem with national repercussions. The cost of treating the problem as a national one will be considerably larger than the cost of going to the source and treating it there. Treat the carbuncle; don’t lop off the arm.
