Pace of Home Price Decline Slowed In February

Data through February 2009 show continued broad-based declines in the prices of existing single family homes across the U.S. with 10 of the 20 metro areas showing record rates of annual decline, and 15 reporting declines in excess of 10% versus February 2008, according to Standard & Poor's Case-Shiller Home Price Indices. The three worst performing cities continue to be in the Sunbelt, each reporting negative returns in excess of 30%. Phoenix was down 35.2%, Las Vegas declined 31.7% and San Francisco fell 31%. Dallas, Denver and Boston faired the best in terms of annual declines down 4.5%, 5.7% and 7.2%. Dallas also had the distinction of being the best performer for the month, returning -0.3%. "We witnessed some deceleration in the rate of decline in some of the markets," says David M. Blitzer, chairman of the index committee. "All 20 metro areas recorded a decline in February, but 16 of the 20 metro areas saw an improvement in their monthly returns compared to January. We will certainly need a few more months of data before we can determine if home prices are finally turning around." Nine of the 20 metro areas showed improvement in their annual returns compared to their returns in January. In February, Cleveland was the only metro area having a record monthly decline, returning -5%. Cleveland, Charlotte, New York and Washington were the only MSAs showing larger declines in home prices in February compared to January's report.