Home prices down 15.8% In May

The price of single-family homes in the country’s top 20 metropolitan markets posted the biggest year-over-year decline recorded in May. The Standard & Poor’s/Case Shiller Home Price Index tumbled 15.8% in May from a year ago, hitting its lowest level since July 2004 and marking its sharpest annual decline since the index was launched in 2000. This marks the second consecutive month that all 20 markets posted declines. The index has not seen an overall price increase since August 2006. Markets in the Sun Belt led the pricing freefall, with Miami, Tampa, Phoenix, Las Vegas, San Diego, San Francisco and Los Angeles posting big year-over-year declines – all in excess of 20%. Charlotte, N.C. and Dallas saw the least volatility, with Charlotte down 0.2% and Dallas slipping only 3.1%. Several Midwestern markets, such as Detroit and Cleveland, faced tough local economies, with Detroit tumbling 17.4% and Cleveland falling 8%. In general, markets that experienced the biggest gains in the recent housing boom continued to be the ones hit hardest in the bust. Between April and May, Miami and Las Vegas were the worst performers, declining 3.6% and 2.9% respectively. From a long-term perspective, the markets turning out the best performance since January 2000 are Washington, Los Angeles, New York and Miami.