Or, call me at: It looks like the real estate “double dip” has arrived – not that it was much of a surprise. According to the S&P/Case-Shiller 20-City Composite Index, home prices fell in March 2011 to lows not seen since 2003. From BusinessWeek:
Home prices in 20 U.S. cities dropped in March to the lowest level since 2003, showing housing remains mired in a slump almost two years into the economic recovery.
The S&P/Case-Shiller index of property values in 20 cities fell 3.6 percent from March 2010, the biggest year-over-year decline since November 2009, the group said today in New York. At 138.16, the gauge was the weakest since March 2003.
Case/Shiller 20-City Composite Index 2000 to March 2011
Home Price Decline Now Worse Than the Great Depression
The latest numbers show that home prices have fallen an astounding 31.6% since the index peak in March 2006. That’s significantly more than the “25.9% decline in the Depression-era years between 1928 and 1933″ reported by Zillow.com a few months back.
Considering the ongoing challenges in the real estate market, the fact that prices continue to slump shouldn’t be much of a surprise. A tough economy, high unemployment, and a large backlog of foreclosures will continue to be a drag on home prices. And if mortgage rates rise over the coming months and years, that will be a drag on home prices as well. Odds are, we’ll probably see more price declines for the foreseeable future.
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