Posted on Thursday, January 27, 2011
The average price of a South Florida home slid to a new post-peak low in November.
According to the closely watched Standard & Poor’s/Case-Shiller index, the average price of single-family homes in South Florida in November tumbled even lower than lows set in spring of 2009.
South Florida joins seven other cities – Atlanta; Charlotte, N.C.; Detroit; Las Vegas; Portland, Ore.; Seattle and Tampa – that saw pricing levels set a new post-peak bottom.
South Florida home prices toppled 48.8 percent from the market’s December 2006 peak, according to Case-Shiller.
The index tracks sales of previously owned single-family homes in 20 metropolitan areas as a gauge for the health of the housing market. The index shows overall pricing strength fell 1.6 percent, year-over-year, in November.
In South Florida, prices fell 3.5 percent, year-over-year. Prices fell two-tenths of a percent from October to November, data showed.
Nationwide, month-over-month prices fell in 19 of the 20 metro areas covered by the index, and only four areas – Los Angeles, San Diego, San Francisco and Washington, D.C. – showed year-over-year gains.
Atlanta saw the worst year-over-year drop, with prices falling 7.9 percent, followed by Chicago, at 7.6 percent.
“Going forward, weak demand, foreclosures, and a glut of homes for sale should translate into another 5 percent to 10 percent drop in the Case-Shiller aggregate indexes,” IHS Global Insight U.S. economist Patrick Newport predicted in a news release.
South Florida Business Journal