Home prices fell more than expected in October

Home prices fell more than expected in October, a sign of the housing will remain a weak link in the U.S. recovery accelerates in the new year.

The S & P / Case-Shiller index of property values fell 0.8 percent from October 2009, the largest drop year after year, since December 2009, the group said today in New York.

A wave of executions in hopes of reaching the market with home prices remain under pressure in 2011, representing a risk to household finances. Responsible for the Federal Reserve this month, said "depressed" housing and high unemployment remained restrictions on consumer spending, reasons reiterated a plan to expand the monetary stimulus registration.

"We will remain in negative territory for several months," said Dean Maki, chief U.S. economist Barclays Capital Inc. in New York, who forecast a year-on-year fall of 1.3 percent. "The housing market remains weak and no recent data suggest a substantial rebound."

After retiring briefly, stock index futures remained higher after the report as a jump in holiday sales outlook boosted consumer spending. The contract on the Standard & Poor's 500 due in March rose 0.2 percent to 1255.5 at 9:23 am in New York. The yield on the benchmark 10-year note rose to 3.36 percent from 3.33 percent yesterday afternoon.

Poll Results

The median forecast is based on projections from 17 economists surveyed. Estimates range from an increase of 1.4 percent to a decline of 1.3 percent. Year after year records began in 2001. Prices rose 0.4 percent in the year ended in September.

The indicator fell by 1 percent in October from the previous month after adjustment for seasonal variations, matching drop in September, which was higher than previously estimated. unadjusted prices fell by 1.3 percent from the previous month.

Eighteen of the 20 cities showed price declines in October, led by a fall of 2.1 percent in Atlanta, and declines of 1.8 percent in Chicago and Minneapolis. Denver and Washington were the only two posted gains.

Six markets, including Atlanta, Charlotte, Miami, Seattle, Tampa and Portland, Oregon, reached its lowest level in October, as prices began to retreat.

"The double dip is almost here," said David Blitzer, chairman of the index of S & P. Sales are not "give a sense of optimism."

Since 2006

The 20-city index fell by 30 percent in October from its peak in July 2006.

Meter every year gives a better indication of trends in prices, the group has said. The panel includes Karl Case and Robert Shiller, the economist who created the index.

The Case-Shiller index is based on an average of three months, which means that the October data was influenced by operations in September and August.

The fall in prices represents a setback for the house after the values recovered earlier this year, thanks to a $ 8,000 tax credit home buyers' purchases which raised.

Reports earlier this month showed that the housing market is stuck near recession levels even when the overall economy is recovering. building permit in November fell for the third-lowest in history, while the beginnings rose for the first time in three months, the Commerce Department reported on 16 December.

Sales of new and existing homes last month rose less than forecast, reports the Department of Commerce and the National Association of Realtors showed last week.

Price Outlook

Based in Atlanta USA Beazer Homes Inc., which builds and sells single family homes starting in the south of the country, the projects will not increase prices.

"We hope that the sales prices of new homes to be somewhere between flat and 3 percent in 2011," said Beazer CEO Ian McCarthy on a conference call last month. "While it is clear that there are risks of further declines in home prices, we believe that new homes are in good standing with respect to existing homes not crushed."

Today's report may be a reminder of why the Fed officials, who met on December 14 last year, for example, housing is falling, while the economy recovers. They cited the decline in value of housing as one of the restrictions on consumer spending.

"The housing sector remains depressed," the Fed said in a statement after the meeting, which reiterated a plan to expand the monetary stimulus registration and said that economic growth is "insufficient to reduce unemployment."

Still, economists in the last two weeks have raised projections for growth in the fourth quarter, reflecting a rebound in consumer spending and the adoption of a law of 858 billion U.S. dollars to extend all the Bush tax cuts- was for two years. The legislation also continues to extended unemployment insurance benefits until 2011 and cuts in payroll taxes by 2 percentage points next year.

The following table shows the historical price variation
according to the S & P / Case-Shiller index of home prices. Cities are
ranked by the biggest monthly gain using seasonally unadjusted
data.

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               1-months 3-months  1-year  2-years  3-years
               earlier  earlier  earlier  earlier  earlier
============================================================
US Composite-20  -1.32%   -2.39%   -0.80%   -8.08%  -24.70%
------------------------------------------------------------
Washington DC    -0.20%   -0.28%    3.65%    1.00%  -17.97%
Las Vegas        -0.21%    0.06%   -3.57%  -29.26%  -51.61%
Denver           -0.57%   -1.65%   -1.79%   -1.90%   -6.98%
Los Angeles      -0.75%   -1.26%    3.34%   -3.21%  -30.24%
Tampa            -0.90%   -2.19%   -3.61%  -18.27%  -34.48%
Miami            -1.11%   -2.60%   -3.39%  -16.95%  -41.06%
Phoenix          -1.11%   -3.93%   -4.28%  -21.61%  -47.21%
Dallas           -1.13%   -3.83%   -3.13%   -3.68%   -6.66%
Charlotte        -1.14%   -2.54%   -4.19%  -10.90%  -14.87%
============================================================
               1-months 3-months  1-year  2-years  3-years
               earlier  earlier  earlier  earlier  earlier
============================================================
Boston           -1.23%   -2.82%   -0.23%   -3.03%   -8.85%
Seattle          -1.34%   -2.66%   -4.11%  -16.03%  -24.61%
Portland         -1.48%   -4.16%   -5.15%  -14.59%  -23.20%
San Diego        -1.50%   -3.05%    2.97%    0.55%  -26.28%
Cleveland        -1.52%   -4.76%   -2.64%   -6.03%  -11.83%
New York         -1.61%   -1.99%   -1.67%   -9.58%  -16.56%
San Francisco    -1.91%   -3.07%    2.23%   -0.43%  -31.28%
Minneapolis      -1.91%   -4.35%   -2.80%  -10.79%  -25.18%
Chicago          -1.99%   -3.08%   -6.48%  -15.95%  -25.04%
Detroit          -2.45%   -3.25%   -5.52%  -20.02%  -36.33%
Atlanta          -2.90%   -6.11%   -6.19%  -13.77%  -22.83%
============================================================