The latest S&P/Case-Shiller numbers are out, and the news remains bad, with declines of over 40% since the market peaked in several metropolitan areas. But in some markets, the rate of decline is starting to flatten out. First, from an L.A. Times story:
The S&P/Case-Shiller index of 20 U.S. metropolitan areas was down 19% in January from the same month a year ago, the largest decline for that month on record.
Every one of the 20 metropolitan areas in the index showed a price decline in January from a year ago. Since peaking in 2006, the index now shows double-digit declines in all of the cities measured, and the overall 20-city index has fallen 29% from the peak.
The Los Angeles area, which includes Orange County, was down 39% from its peak in 2006. But the worst decline was in Phoenix, at 49%, and four other metro areas showed greater than 40% declines from their respective peaks: Las Vegas, Miami, San Francisco and San Diego.
Los Angeles area prices declined 26% in January from the previous year. The three sharpest January declines, however, were in Phoenix (35%), Las Vegas (33%) and San Francisco (32%)...
However, Jonathan Lansner thinks that the declines in the Los Angeles area (which this index includes with Orange County) may be flattening out. From his blog:
January’s Standard & Poor’s/Case-Shiller home-price index report for LA/OC region says …
- Local pricing was down 2.8% from December, extending monthly loss streak that dates to February 2007.
- Down 39.2% from the peak in September 2006.
- Down 25.8% in a year, 24th consecutive annualized loss — but it’s the 4th straight month where the year-to-year loss shrank.
- January’s price level for Los Angeles and Orange counties was last seen in September 2003.
