Housing new Lows

By TESS STYNES U.S. home prices ended the first quarter at the lowest levels since the housing crisis began in mid-2006, according to Standard & Poor's Case-Shiller home-price indexes. During the first quarter, home prices reached new lows, falling 2% sequentially and 1.9% year-to-year. Prices are down roughly 35% from their peak in the second quarter of 2006. The Case-Shiller index of 10 major metropolitan areas was down 2.8% in March from a year earlier. The 20-city index was off 2.6%. Month to month, the declines were 0.1% for the 10-city index, while the 20-city prices were basically unchanged. As of March, average home prices were at levels reached in late 2002 for the 20-city measure and early 2003 levels for the 10-city composite. Demand for homes has been showing some signs of stabilization, as low-mortgage rates, some loosening of credit conditions and improved job growth have pulled some buyers back to the market. However, "while there has been improvement in some regions, housing prices have not turned" said David Blitzer, chairman of S&P's index committee. Despite some better numbers in the latest period, "since we are entering a seasonal buying period, it becomes very important to look at both monthly and annual rates of change in home prices in order to understand the broader trend." During March home prices in five metropolitan markets fell to new lows: Atlanta, Chicago, Las Vegas, New York and Portland. However, this marked an improvement from the nine cities that reported new lows a month earlier. Of the 20 major U.S. metropolitan markets, 12 reported prices were higher than during February, while seven saw prices fall and one market--Las Vegas--was flat. Phoenix reported the strongest annual growth rate, up 6.1%, while home prices in Atlanta saw the biggest year-to-year drop, down nearly 18%. What a Surprise!!!! Just Joking.