NEW YORK: According to the latest raft of data released by credit ratings agency Standard & Poors, October witnessed one of the worst plunges in US home market values since the year the nation entered World War II - sixty-six years ago.
The data, published Wednesday, shows house prices in eleven of 20 large metropolitan areas posted record declines in October. While the The S&P/Case-Shiller Home Price Index fell in 17 of those areas.
Yale University economics professor Robert Shiller, co-author of the index, asks rhetorically: "When was the last time we had a bigger drop than this? It looks like 1941."
Home prices rose in just three of the twenty cities surveyed during October: Charlotte, North Carolina; Portland, Oregon; and Seattle.
But Global Insight's US economist Patrick Newport, said he expects prices in Seattle and Portland to go into reverse by the end of this year.
This is the S&P index of the areas surveyed (in alphabetical order):
Las Vegas -10.7%
Los Angeles -8.8%
New York -4.1%
+Portland, Oregon +1.9%
San Diego -11.1%
San Francisco -6.2%
Washington, DC -7.0%
Composite 20 -6.1%
Professor Shiller expects prices to fall another 5% to 7% in 2008.
Data sourced from USA Today; additional content by WARC staff