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Record Declines in Home…
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Created: Mon Mar 24 15:20:00 2008
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Record Declines in Home Prices Continued in 2008 According to the
S&P/Case-Shiller Home Price Indices
New York, March 25, 2008 Data through January 2008, released today by Standard & Poor's for its
S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show declines in the
prices of existing single family homes across the United States continued into the new year, with 16 of
the 20 reporting MSAs posting record low annual declines, of which 10 are in double-digits.
S&P/Case-Shiller Home Price Indices
24% 24%
21% 21%
18% 18%
15% 15%
12% 12%
10 -City Composite
Percent change, year ago
9% 9%
6% 6%
20-City
Composite
3% 3%
0% 0%
-3% -3%
-6% -6%
-9% -9%
-12% -12%
-15% -15%
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Source: Standard & Poor's and Fiserv
The chart above depicts the annual returns of the 10-City Composite and the 20-City Composite Indices.
Both of the composite indices are now reporting annual declines in excess of 10%. The 10-City
Composite set yet another new record, with an annual decline of 11.4%. The 20-City Composite recorded
an annual decline of 10.7%.
"Unfortunately it does not look like early 2008 is marking any turnaround in the housing market, after
the declining year recorded throughout 2007," says David M. Blitzer, Chairman of the Index Committee
at Standard & Poor's. "Home prices continue to fall, decelerate and reach record lows across the nation.
No markets seem to be completely immune from the housing crisis, with 19 of the 20 metro areas
1
Case-Shiller® and Case-Shiller Indexes® are registered trademarks of Fiserv, Inc.
reporting annual declines in January and the remaining Charlotte North Carolina eking out a benign
1.8% growth rate. Looking deeper into the data, you can see that 16 of the metro areas are also reporting
record low annual growth rates. The monthly data show that every one of the MSAs has now declined
every month since September 2007, marking five consecutive months. On top of that, the declines have
increased through time, in general, as 13 of the 20 MSAs reported their single largest monthly decline in
January."
Las Vegas and Miami share the dubious title of the weakest markets in January, reporting double-digit
annual declines of 19.3%, followed by Phoenix at -18.2%. In January, Washington and Minneapolis
slipped into negative double-digit territory with annual returns of -10.9% and -10.0%, respectively.
The table below summarizes the results for January 2008. The S&P/Case-Shiller Home Price Indices are
revised for the 24 prior months, based on the receipt of additional source data. More than 21 years of
history for these data series is available, and can be accessed in full by going to
www.homeprice.standardandpoors.com
January 2008 January/December December/November
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Atlanta 127.08 -1.8% -1.5% -4.8%
Boston 162.59 -1.2% -1.7% -3.4%
Charlotte 131.70 -0.2% -0.6% 1.8%
Chicago 156.47 -2.2% -1.0% -6.6%
Cleveland 108.49 -3.2% -1.1% -8.5%
Dallas 118.56 -1.8% -1.3% -3.3%
Denver 128.98 -1.5% -1.8% -5.1%
Detroit 100.17 -3.0% -1.8% -15.1%
Las Vegas 186.05 -5.1% -2.9% -19.3%
Los Angeles 224.41 -3.7% -3.1% -16.5%
Miami 225.40 -2.7% -2.6% -19.3%
Minneapolis 151.16 -3.0% -2.1% -10.0%
New York 200.49 -0.9% -1.1% -5.8%
Phoenix 180.06 -4.1% -3.5% -18.2%
Portland 178.81 -2.0% -0.6% -0.5%
San Diego 197.45 -2.5% -3.4% -16.7%
San Francisco 183.81 -2.9% -3.2% -13.2%
Seattle 181.62 -1.8% -1.2% -1.3%
Tampa 194.64 -2.7% -1.6% -15.0%
Washington 212.83 -2.5% -2.4% -10.9%
Composite-10 196.06 -2.3% -2.2% -11.4%
Composite-20 180.65 -2.4% -2.1% -10.7%
Source: Standard & Poor's and Fiserv
Data through January 2008
The S&P/Case-Shiller Home Price Indices are published on the last Tuesday of each month at 9:00 am
ET. They are constructed to accurately track the price path of typical single-family homes located in each
metropolitan area provided. Each index combines matched price pairs for thousands of individual houses
from the available universe of arms-length sales data. The S&P/Case-Shiller® National U.S. Home Price
Index tracks the value of single-family housing within the United States. The index is a composite of
single-family home price indices for the nine U.S. Census divisions and is calculated quarterly. The
S&P/Case-Shiller Composite of 10 Home Price Index is a value-weighted average of the 10 original
metro area indices. The S&P/Case-Shiller Composite of 20 Home Price Index is a value-weighted
average of the 20 metro area indices. The indices have a base value of 100 in January 2000; thus, for
example, a current index value of 150 translates to a 50% appreciation rate since January 2000 for a
typical home located within the subject market.
These indices are generated and published under agreements between Standard & Poor's and Fiserv, Inc.
The S&P/Case-Shiller Home Price Indices are produced by Fiserv, Inc. In addition to the S&P/Case-
Shiller Home Price Indices, Fiserv also offers home price index sets covering thousands of zip codes,
counties, metro areas, and state markets. The indices, published by Standard & Poor's, represent just a
small subset of the broader data available through Fiserv.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost
provider of financial market intelligence, including independent credit ratings, indices, risk evaluation,
investment research and data. With approximately 8,500 employees, including wholly owned affiliates,
located in 23 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has
played a leading role for more than 140 years in providing investors with the independent benchmarks they
need to feel more confident about their investment and financial decisions. For more information, visit
http://www.standardandpoors.com.
For more information contact:
David Blitzer David Guarino
Chairman of the Index Committee Communications
Standard & Poor's Standard & Poor's
212 438 3907 1 212 438 1471
david_blitzer@standardandpoors.com dave_guarino@standardandpoors.com