House Prices Remain in Critical Condition

The latest IAS360 House Price Index showed house prices falling another 3% in February 2009, giving no indication of any positive turn in the housing markets the company tracks. The Northeast reported a 12.8% decline across the last five months and 4.6% drop in February. Similarly, the South dropped 12.8% and 3% for the same periods. The West, for its part, was down 10.2% and 2.5%. The Midwest, though down, is the only region not showing double-digit declines. House prices have now fallen 14.4% on a year- over-year basis and 17.9 % since the height of the real estate bubble in 2006. Just since the economic collapse began in September 2008, the IAS360 has shown a drop of 10.9%. Six out of the 10 largest MSAs in the country have experienced double-digit declines since half a year ago, the company said, the worst being Boston, San Francisco, and Miami, down 20.3%, 19.3%, and 18.1% respectively. The Boston area fell 10.3% in February alone.