Home prices dropped in September from August in 17 of the 20 cities tracked by the Standard & Poor's/Case-Shiller index. It was the first decline after five straight months in which at least half the cities in the survey showed monthly gains.
A separate index for the July-September period shows that values were mostly unchanged from the previous quarter. The index is based on studying all loan types, not just GSE mortgages.
David M. Blitzer, chairman of S&P's index committee, said that while the steep price declines that occurred from 2007 to 2009 appear to be over, home values are down from the same time last year and show few signs of strength. "Any chance for a sustained recovery will probably need a stronger economy," he said.
Still, there was some good news: Prices rose in New York, Portland, Ore. and Washington.
Atlanta, San Francisco and Tampa, Fla. posted the biggest monthly price declines while values in Atlanta, Las Vegas and Phoenix fell to their lowest points since the housing crisis began. Blitzer called the new lows reached in those three cities a "bit disturbing."
Housing analysts say that despite record low mortgage rates consumers are still fearful about both their jobs, and further price declines. The only plus for the market is that in some cities it's becoming cheaper to own than to rent.
