United States: Home prices continue to drop in November, approaching April 2009 trough
January 25, 2011
The S&P/Case-Shiller home price composite 20-city index fell in November for a fourth consecutive month, decreasing 1.0% over October on a non-seasonally adjusted basis (October: -1.3% month-on-month). The reading came in a notch below market expectations, as analysts had anticipated prices falling 0.9% over the previous month. Home prices dropped 1.6% over November 2009 (October: -0.8% year-on-year) and are quickly approaching the trough recorded in April 2009. At the current level, home prices have only recovered an accumulated 3.3% since April 2009 and remain 30.3% below their July 2006 peak. November's weaker-than-expected reading is raising concerns among private sector analysts that housing prices are experiencing a double-dip, with S&P officials stating that ?a double-dip could be confirmed before Spring?.