according to the latest S&P/Case-Shiller 20-city report. Prices fell in 19
of the 20 cities the index covers.
Prices are down 3.7% from a year ago, and off 32.8% since they peaked in the
summer of 2006. The index is currently only 0.6% above its March, 2011 low.
"Despite continued low interest rates and better real GDP growth in the
fourth quarter, home prices continue to fall," said David Blitzer, spokesman for
S&P.
Phoenix, one of the hardest hit metro areas in the country, was the only
place to record a gain in November. Prices there rose 0.6% month-over-month but
are down 3.6% from a year ago.
Home prices in Chicago posted the steepest decline of any city on the index,
falling 3.4% month-over-month. Atlanta prices were down 2.5% and Detroit prices
fell 2.4%.
Has Obama's housing policy failed?
The drop in home prices was more than housing bear Peter Morici, professor at
the University of Maryland Smith School of Business, anticipated. He had
forecast a 0.8% drop.
"We've had more robust sales activity in the housing market lately," he said.
Morici thinks recent home price weakness stems at least partially from the
fact that more sellers have accepted the weak market conditions and are putting
their homes up for sale. Retirees and other home owners had postponed sales,
trying to wait out the decline.
"Sooner or later, you have to get rid of that house," he said.