CASE-SHILLER: Home Prices Fall Just 0.04%, Economists Were Expecting Worse

Home Housing Complex Urban Sprawl Ontario

Photo: Wikimedia

UPDATE:Home prices continued to decline in the U.S. this January, new data out of Standard & Poor’s shows.

Prices in the 20 cities making up the firm’s key composite index fell 0.04 per cent, better than analyst expectations for a 0.3 per cent drop. The data also showed prices fell at a slower pace than in December, when they declined 0.47 per cent.

“Despite some positive economic signs, home prices continued to drop,” David Blitzer, chair of S&P indices, said. “The 10- and 20- City Composites and eight cities – Atlanta, Chicago, Cleveland, Las Vegas, New York, Portland, Seattle and Tampa – made new lows.”

Compared to year-ago levels, sellers are getting 3.78 per cent less today. That is marginally better than consensus opinion on the Street, which forecast a decline of 3.8 per cent.

Three of the 20 markets tracked by Standard & Poor’s saw price increases in January, with 16 cities seeing prices fall between -0.4 and -2.5 per cent. Miami, Phoenix and Washington logged increases. Data was not available for the Charlotte market. 

“Atlanta continues to stand out in terms of recent relative weakness,” Blitzer said. “It was down 2.1% over the month, and has fallen by a cumulative 19.7% over the last six months. It also posted the worst annual return, down 14.8%.

Below, data from S&P.


Photo: Standard & Poor’s


Photo: Standard & Poor’s


Photo: Standard & Poor’s


Minutes away from the first of three major data points of the day: the Case-Shiller home price index.

Economists polled by Bloomberg are looking for a 0.3 per cent sequential drop, which would represent a deceleration from December’s 0.5 per cent decline.

If that holds, it would mean home prices in the 20 city composite are 3.8 per cent lower than where they were one year ago. 

The main index is expected to decline to 135.80 from 136.71.

Standard and Poor’s will release the data at 9:00 a.m. EST. Follow the announcement live here >

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