The New York Times published a big story today on the record decline in home values in Standard & Poor’s Case-Schiller Property Index. The Index, which measures the home values in 20 metropolitan areas, fell 19% in January from January a year ealier. Since the housing bubble broke, many metropolitan areas have seen their indexes cut nearly in half. Phoenix has seen prices drop 48.5% from its June 2006 peak, while Las Vegas, Miami, San Francisco, and San Diego have all seen declines of more than 40%.
Analysts cited the Case-Schiller Index performance as proof that housing prices have likely still not bottomed out and that the housing market continues to perform poorly. The report is especially interesting in light of the fact that the US Census Bureau recently released a report indicating that the sale of new homes rose in February. While many viewed this report as a sign that the housing sales market has bottomed out, home prices generally take longer to rebound. It is also unsurprising that sales are increasing as prices are plummeting- many are taking advantages of foreclosures and the low prices to enter the market for the first time.