While financial pundits keep calling a bottom in home prices, they just keep falling. Case-Shiller’s latest September home price index shows a 5th consecutive month of year over year drops in home prices. In addition, the non-seasonally adjusted index fell for the first time month over month since February. The drop itself wasn’t a surprise, analysts were estimating a -3.1% year over year drop – however, the drop was more extreme than expected at -3.9%.
To put the numbers in perspective, the index is now back at April 2003 levels. Given the recent rise in mortgage delinquencies to record levels, we can only assume more downside to come. Results were mixed across regions. Prices fell sharply in Atlanta (-4.1% month over month, seasonally adjusted) and declined in 15 of the 20 surveyed cities. As we’ve reported before – the fact that out of control government spending is the only thing propping up the economy showed up again in the index results as Washington DC had the best results at +1% year over year.