Home prices in the US are descending again in most major cities after posting small gains over the summer and spring, according to the Associated Press.
Home prices in the US are descending again in most major cities after posting small gains over the summer and spring, according to the Associated Press.
According to the agency, The Standard & Poor's/Case-Shiller index released on Tuesday revealed that rates dropped in September from August in 17 of the 20 cities that were monitored. That was the first decline after five straight months where at least half of the cities showed monthly gains.
Cities like Atlanta, San Francisco and Tampa posted the biggest monthly price declines. Prices in Atlanta, Las Vegas and Phoenix fell to their lowest home point since the housing crisis began four years ago. Prices rose in New York, Portland and Washington.
High unemployment and weak job growth even two years after the recession ended, have made Americans reluctant to purchase a home.
Even the lowest mortgage rates in history haven't been enough to lift sales. Some people can't qualify for loans or meet higher down payment requirements. Many with good credit and stable jobs are holding off because they fear that home prices will keep falling. Sales of previously occupied home sales are on pace to match last year's dismal figures — the worst in 13 years.
The Case Shiller index, which covers half of all US homes, measures prices compared with those in January 2000 and creates a three-month moving average. The September data has revealed that prices are certain to fall again once banks resume millions of foreclosures. They have been delayed because of a yearlong government investigation into mortgage lending practices.
The index shows that home prices had stabilised in coastal cities over the past six months, helped by a rush of spring buyers and investors. But this year, home prices in many cities, including Cleveland, Detroit, Las Vegas, Phoenix and Tampa, have reached their lowest points since the housing bust more than four years ago.
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