(Crain's) — An index of local home prices fell in September after five months of gains, mirroring a broader decline in the largest U.S. cities amid a faltering housing market.
The Standard & Poor's/Case-Shiller index of Chicago-area single-family home prices declined 1.5% from August to September and was down 5.6% from year-ago levels, according to a report released Tuesday.
Prices fell on a month-over-month basis in 18 of the 20 U.S. metropolitan areas tracked by Standard & Poor's. An index of the 20 U.S. cities fell 0.7% in September but was up 0.6% from a year earlier, the report said.
Federal homebuyer tax credits boosted home purchases and prices earlier this year, but broader economic problems — high foreclosure rates, a weak job market — have held the market back since the credits expired at the end of April.
“While some of the bad numbers may reflect the end of the government's tax incentive for first time home- buyers, there are other problems weighing on the housing market,” David M. Blitzer, chairman of the index committee at Standard & Poor's, said in a news release. “The national economy is certainly the number one issue for housing. Additionally, there is a large supply of houses on the market and further, hidden, supply due to delinquent mortgages, pending foreclosures or vacant homes.”
Just two major metro areas, Washington, D.C., and Las Vegas, recorded month-over-month price gains. Cleveland posted the biggest decline, 3%.
An index of local condominium prices fell 2.4% from August to September and was down 9.3% from September 2009, according to Standard & Poor's. The condo index is down 22.5% from its September 2007 peak.
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