U.S. home prices fell 1.4% in the first quarter compared with a year earlier, the first year-over-year decline since 1991, according to the S&P/Case-Shiller home price index released Tuesday. A year ago, home prices were rising at an 11.5% pace. The 10-city price index fell 1.9% year-on-year through March, while the 20-city index dropped 1.4%. Thirteen of 20 cities have seen falling prices in the past year, led by Detroit and San Diego. Home prices rose 10% in Seattle. The national decline “is reaffirmation of the pullback in the U.S. residential real estate market,” said Robert Shiller, chief economist for MacroMarkets LLC, and co-inventor of the index.
Declines in home prices in 20 U.S. metropolitan areas accelerated in the 12 months ended in March as the supply of homes exceeded demand, a private survey showed.
Home values dropped 1.4 percent from March 2006, after declining 0.8 percent in the year ended February, according to a report today by S&P/Case-Shiller.
Nationally, home prices also fell 1.4 percent in the first quarter from the same period last year, the fist decline since 1991.
The March index covering transactions in 20 metropolitan areas, showed home prices dropped 0.3 percent from a month earlier, following a 0.4 percent decline in February. The figures aren’t adjusted for seasonal effects, so economists prefer to focus on year-over-year changes instead of month to month.
S&P/Case-Shiller’s 10-city composite index, which has a longer history, decreased 1.9 percent in March from a year earlier.