The Case Shiller index for March showed a slight drop in the rate of decline versus February. This supports the theory that we have passed the peak rate of decline and that price-drops will now begin a gradual decline.
Importantly, this does not mean the housing market is “recovering.” Prices are still dropping at nearly 19% year over year, and the market is on track to drop at least 40% from the peak and probably more (it’s down almost 30% now).
S&P: The 10-City and 20-City Composites recorded annual declines of 18.6% and 18.7%, respectively. These are slight improvements from their returns reported for February.
“Declines in residential real estate continued at a steady pace into March,” says David M. Blitzer,
Chairman of the Index Committee at Standard & Poor’s. “All 20 metro areas are still showing negative
annual rates of change in average home prices with nine of the metro areas having record annual
declines. Seventeen metro areas recorded a monthly decline in March, with Minneapolis, Detroit and
New York posting record monthly declines.
On a positive note, nine of MSAs are reporting a relative improvement in year-over-year returns and nine of the 20 metro areas saw an improvement in their monthly returns compared to February.