Property Prices in the USA see another Fall

For the 25th consecutive month in a row, US house prices saw a drop in August. 10 Major US markets have now seen a record 17.7 percent average fall in the last year, with some markets falling more than 30 percent for the year. Phoenix, Las Vegas, Miami and Los Angeles topped the list of losers, and no city on the S&P/Case Shiller Home Price 20-city Index saw a price increase over the last year.

It is likely this decline will continue, as these figures do not reflect the financial crisis that came to fruition last month. Considerable over-building during the last ten years, lack of credit and record foreclosures mean the even though home sale volumes rose, empty inventory remained static at around 2.8 percent of total homes available.

Banks are now reaching the point where they are happy to unload foreclosed properties at almost any price rather than hold on to a depreciating asset that requires on-going maintenance costs. One does wonder if it was worth repossessing them in the first place. It might have made more sense to just give them away to the inhabitants.

Home prices in the USA continue to decline

S&P Case Shiller Home values

S&P Case Shiller Home Price Index - PDF Download