Home prices continued to drop in November, according to the latest report that covers 20 cities across the country in its index. Out of those 20, 19 saw a decline, resulting in a 1.3% dip from the previous month in the index score.
CNNMoney cites the latest numbers from the S&P/Case-Shiller 20-city report, which shows that not only did prices on homes fall in a month, but they’re down 3.7% from a year ago. The peak prices were 32.8% higher in the summer of 2006, and we’re only hovering 0.6% above March 2011’s lowest prices.
“Despite continued low interest rates and better real GDP growth in the fourth quarter, home prices continue to fall,” said David Blitzer, spokesman for S&P.
The only city to post a gain in the index was Phoenix, where prices rose 0.6% in the month, but were still down 3.6% from the same time a year ago.
Many factors could contribute to the drop, which is surprising to some experts who had been seeing an encouraging amount of activity in the housing market.
Some sellers who were holding out are finally accepting the fact that prices likely aren’t going to go up anytime soon, contributing to the lower prices. It’s gotta go sometime, is the thinking here, and after three years of a recession, people are lowering prices just to get that house sold.
The increase in sales of properties in foreclosure could also be dragging the numbers down, as those homes are going for a song from banks who repossessed them from mortgage borrowers who couldn’t pay up.
Home prices post steep decline in November [CNNMoney]