Home price index dips more than expected
New York City metro communities are among those nationwide that saw a drop in home pricees, according to the Standard & Poors Case/Schiller report. (April 2010) Credit: AP
Home prices dropped more than forecast in October, a sign housing will remain a weak link as the recovery accelerates into 2011.
The Standard & Poor's/Case-Shiller index of property values fell 0.8 percent from October 2009, the biggest year-over-year decline since December 2009, the group said Tuesday. The decrease exceeded the 0.2 percent drop projected by the median forecast of economists surveyed by Bloomberg News.
A wave of foreclosures waiting to reach the market means home prices will remain under pressure in 2011, representing a risk to household finances.
The gauge fell 1 percent in October from the prior month after adjusting for seasonal variations, matching September's drop, which was larger than previously estimated. Unadjusted prices decreased 1.3 percent from the prior month.
Eighteen of 20 cities showed a decrease in prices in October, led by a 2.1 percent drop in Atlanta, and decreases of 1.8 percent in Chicago and Minneapolis. The decrease in New York, including Long Island and other area suburbs, was 1.5 percent.
Six markets, including Atlanta, Charlotte, Miami, Seattle, Tampa and Portland, Oregon, reached their lowest levels in October since prices started to retreat. Denver and Washington were the only two that posted gains. - Bloomberg News
