Home Prices Fell 18.2% in 4Q

Home prices fell 18.2% in the fourth quarter, retreating to their 2003 levels, according to the newly released Standard & Poor's/Case-Shiller housing price index. "This is the steepest rate of decline we have seen," S&P managing director David Blitzer told reporters. The December HPI report shows that average house prices are down 26.7% since the peak in the second quarter of 2006. Wellesley College professor Karl Case noted that Case-Shiller data includes auction sales, which is one reason the index shows steeper price declines than other indexes. "There are very few, if any, pockets of turnaround that one can see in the data," said Mr. Blitzer. However, Boston, Denver, Los Angeles, San Diego and Washington D.C. showed a relative improvement in lesser rates of decline.