Tumble in home prices eases in LV
WASHINGTON -- Declines in home prices in the Las Vegas, Cleveland, Los Angeles, and Washington D.C., metro areas -- all ravaged by foreclosures -- eased somewhat in January, a new report shows.
The Standard & Poor's/Case-Shiller index of home prices in 20 major cities tumbled by a record 19 percent from January 2008. It was the largest decline since the index started in 2000. The 10-city index dropped 19.4 percent, also a new record.
All 20 cities in the report showed monthly and annual price declines, with 13 posting new annual records. Prices dropped by more than 10 percent in 14 cities.
Faring better were Dallas, Denver and Cleveland, with annual price declines of around 5 percent.
"There are very few bright spots that one can see in the data," David Blitzer, chairman of S&P's index committee, said in a statement. "Most of the nation appears to remain on a downward path."
Las Vegas registered 125.64 on the S&P/Case-Shiller index in January, down from 131.40 in December and 186.05 in the same month a year ago. That compares with 130.54 for Phoenix, 175.85 for Los Angeles, 155.47 for San Diego and 127.28 for Denver.
Las Vegas-based SalesTraq reported the median price for existing homes dropped 38.1 percent in February to $142,500, while new home median price fell 21.8 percent to $220,000. The annual decreases were 37.1 percent and 15.3 percent, respectively, in January.
"The key to the problems plaguing this real estate market is excess inventory," consultant Steve Bottfeld of Marketing Solutions said. "Excess inventory and weak demand always result in sliding prices."
Prices in the 20-city index have plummeted 29 percent from their peak in summer 2006, while the 10-city index has fallen 30 percent.
Prices have sunk back to levels not seen since late 2003, and analysts say the ultimate drop in prices could easily be 35 percent or greater in some areas
