Housing gauge shows price growth slowest in 10 years

January 31, 2007|Associated Press

NEW YORK -- Prices of single-family homes across the nation rose in November at the slowest rate in more than a decade, a housing index released yesterday by Standard & Poor's showed, countering other evidence the housing slowdown may be nearing an end.

The S&P/Case-Shiller composite index showed a 1.3 percent year-over-year increase in the price of a single-family home based on existing homes tracked over time in 10 metropolitan markets.

For its 20-city composite index, prices grew 1.7 percent, the slowest rate yet for that data, according to S&P index panel chairman, David Blitzer. That data has been collected since 2001. "The weakness continues to spread," he said. "I don't see any signs of a bottom."

The last time the growth dipped lower than 1.3 percent for the 10-city index was in September 1996, when it measured 1.2 percent.

All cities in the survey, except for Charlotte, N.C., showed a decline in annual returns when compared with the prior month. Seven of the 20 cities are showing negative annual returns.

"Countrywide, home price declines appear to show no signs of slowing down," said chief economist Robert Shiller of MacroMarkets LLC. Shiller noted that the downward trend is seen nationally while certain cities such as Boston and Detriot have done worse.