Washington, DC, United States (AHN) – United States housing prices continued to drop during the first three months of the year, declining in value by 4.2 percent compared to the last three months of 2010, according to the S&P Case-Shiller national home price index.

Factors blamed for the drop in prices include the glut of foreclosed housing on the market and weak demand caused by continuing high unemployment and lack of money.

Housing prices not only dropped below the 2009 bottom of the housing bubble bust, but also fell to the same level as the middle of 2002, when prices were beginning their run-up to bubble-high levels.

Moreover, a backlog of properties about to enter the foreclosure pipeline, along with properties stalled in the process, are likely to continue to pressure housing prices down for an extended time.

The 4.2 percent drop in the first quarter followed a 3.6 percent drop in the fourth quarter of 2010, according to the index, which is published by Standard & Poor’s.

David M. Blitzer, chairman of the Index Committee at S&P Indices, put the situation into perspective.

“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation. The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2 percent over the first quarter alone, and is down 5.1 percent compared to its year-ago level. Home prices continue on their downward spiral with no relief in sight,” Blitzer said.

“Since December 2010, we have found an increasing number of markets posting new lows. In March 2011, 12 cities – Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa – fell to their lowest levels as measured by the current housing cycle. Washington D.C. was the only MSA displaying positive trends with an annual growth rate of +4.3 percent and a 1.1 percent increase from its February level,” he said.

“The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit,” Blitzer added.

Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains.

“Looking deeper into the monthly data, 18 MSAs and both Composites were down in March over February. The only two which weren’t, are Washington, DC, up 1.1 percent, and Seattle, up 0.1 percent. Atlanta, Cleveland, Detroit and Las Vegas are the markets where average home prices are now below their January 2000 levels. With a March index level of 100.27, Phoenix is not far off,” the committee chairman said.

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Washington, DC, United States (AHN) – United States housing prices continued to drop during the first three months of the year, declining in value by 4.2 percent compared to the last three months of 2010, according to the S&P Case-Shiller national home price index.

Factors blamed for the drop in prices include the glut of foreclosed housing on the market and weak demand caused by continuing high unemployment and lack of money.

Housing prices not only dropped below the 2009 bottom of the housing bubble bust, but also fell to the same level as the middle of 2002, when prices were beginning their run-up to bubble-high levels.

Moreover, a backlog of properties about to enter the foreclosure pipeline, along with properties stalled in the process, are likely to continue to pressure housing prices down for an extended time.

The 4.2 percent drop in the first quarter followed a 3.6 percent drop in the fourth quarter of 2010, according to the index, which is published by Standard & Poor’s.

David M. Blitzer, chairman of the Index Committee at S&P Indices, put the situation into perspective.

“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation. The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2 percent over the first quarter alone, and is down 5.1 percent compared to its year-ago level. Home prices continue on their downward spiral with no relief in sight,” Blitzer said.

“Since December 2010, we have found an increasing number of markets posting new lows. In March 2011, 12 cities – Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa – fell to their lowest levels as measured by the current housing cycle. Washington D.C. was the only MSA displaying positive trends with an annual growth rate of +4.3 percent and a 1.1 percent increase from its February level,” he said.

“The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit,” Blitzer added.

Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains.

“Looking deeper into the monthly data, 18 MSAs and both Composites were down in March over February. The only two which weren’t, are Washington, DC, up 1.1 percent, and Seattle, up 0.1 percent. Atlanta, Cleveland, Detroit and Las Vegas are the markets where average home prices are now below their January 2000 levels. With a March index level of 100.27, Phoenix is not far off,” the committee chairman said.

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