The above chart shows the annual change in the S&P/Case-Shiller Composite-10 home price index since 2000. According ot the index, home prices declined in March, and the Composite 10 index reached its lowest level since 2003.
The latest (5/29/12) release of the S&P/Case-Shiller home (CSI) price indices for March reported that both the Composite-10 price index (based on 10 selected typical cities in US) and the Composite-20 price index (based on 20 selected typical cities in US) both declined since February . This has resulted in the lowest level seen to on the Composite-10 since early 2003 and the largest peak decline seen since the nearly six year old housing bust began in 2006.
The 10-city composite index declined 2.85% as compared to March 2011 while the 20-city composite declined 2.57% over the same period. Both of the broad composite indices show significant peak declines slumping -35.21% for the 10-city national index and -35.07% for the 20-city national index on a peak comparison basis.
– According to the Mortgage Bankers Association, 11.8% of homeowners with mortgages (i.e., more than 6 million homeowners) were either delinquent on their payments or in foreclosure at the end of the first quarter.
– According to CoreLogic, about 22% of residential properties with mortgages are currently underwater. Add to this the currently high unemployment and underemployment rates, and tight credit conditions, one gets a recipe for further price declines.
The Case-Shiller indices are expected to trend down a bit further, but that a bottom is in sight.
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