Case-Shiller20-City Home Price Index Accelerates Decline Faster Than Expected to a Record Annual Drop

In November, the S&P Case Shiller index for 20 major cities indicates that home price declines fell -7.74% YoY (consensus -7.1%YoY, prior -6.1% YoY). The three month annualized decline rate has now risen to -16.2% for the 20-city index which goes back to 2000. The smaller ten city index, which has a longer history going back to 1987, fell -8.42% YoY. The largest monthly declines in November were in the West. Los Angeles fell the most at -3.64% MoM, while the average for the twenty cities fell -2.14% MoM. All cities saw declines in prices on a monthly basis in November, with Portland falling the least at -.78% MoM. Over the past year, Miami had the largest drop of -15% YoY. Other cities with annual double-digit declines are Tampa, Detroit, Phoenix, Las Vegas, San Diego, and Los Angeles. Three cities are still showing house price appreciation over the past year, as of November 2007. They are Charlotte (+2.9% YoY), Seattle (+1.77% YoY), and Portland (+1.27% YoY). The major concern in the report is that house price declines are accelerating, and all regions are now feeling the pain. Also, Washington home prices fell -1.74% MoM and -7.77% YoY. The decline of the past three months, when annualized, was -11.24%.