“New York, November 30, 2010 – Data through September 2010, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index declined 2.0% in the third quarter of 2010, after having risen 4.7% in the second quarter. Nationally, home prices are 1.5% below their year-earlier levels. In September, 18 of the 20 MSAs covered by S&P/Case-Shiller Home Price Indices and both monthly composites were down; and only the two composites and five MSAs showed year-over-year gains. While housing prices are still above their spring 2009 lows, the end of the tax incentives and still active foreclosures appear to be weighing down the market.”
“The chart above depicts the annual returns of the U.S. National, the 10-City Composite and the 20-City
Composite Home Price Indices. The S&P/Case-Shiller U.S. National Home Price Index, which covers all
nine U.S. census divisions, recorded a 1.5% decline in the third quarter of 2010 over the third quarter of
2009. In September, the 10-City and 20-City Composites recorded annual returns of +1.6% and +0.6%,
respectively. These two indices are reported at a monthly frequency and September was the fourth
consecutive month where the annual growth rates moderated from their prior month’s pace, confirming a clear deceleration in home price returns.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.