House prices continue to plummet

12.31.08
By Timothy Jones

It is not a good time to be an American homeowner attempting to sell your property.

According to the most recent S&P Case-Shiller index, house prices fell by a record 18 percent in October, compared with the same month in 2007.

This is the 27th month in a row that the index has shown losses, with prices in Western cities such as Phoenix, Las Vegas and San Francisco all falling more than 30 percent year-on-year.

Meanwhile, cities across the U.S. including Atlanta, Charlotte, Detroit, Minneapolis, Tampa and Washington all posted their largest monthly declines on record during October.

"The bear market continues - home prices are back to their March 2004 levels," commented David Blitzer of Standard & Poor's, according to CNN Money.

Despite falling prices, many experts say the number of home sales is not likely to increase any time soon, even though the average interest rates for home loans are currently also hovering near record lows.

This is because potential buyers are still struggling to meet lenders' criteria, which these days typically requires a 20 percent down payment.

However, lower interest rates have been of assistance to a number of existing homeowners who want to refinance their home loans.

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House prices and sales are falling