S&P / Case-Shiller home-price index further fell to 17.4 percent in September compared from what it was a year ago. The scale has been dropping monthly since January 2007, and yearly since 2001.
Swelling foreclosures caused home prices to re-deteriorate, while increasing the stock properties for sale. This abundance in foreclosed properties in the market will most probably lead to another quarter of economic struggle.
Last August home prices have fallen 1 percent then declined again by 1.8 percent in September.
The GDP also fell. The Gross Domestic Product decreased 0.5 percent greater than the estimated decline of 0.3 percent only. This is the greatest decline since the depression in 2001.
Repossessed homes then again contributed to the 16.6 percent fall for 3 months round September. A 16.9 percent decline of the 20-city index was predicted. Forecasts show a drop of 16-17.2 percent. All in the 20-city index demonstrated a decline in prices in September, with Phoenix and Las Vegas as forerunners at a 31.9 percent and 31.3 drop respectively.
Condominium prices also fell in Boston, Chicago, New York and San Francisco by 10 percent. Los Angeles had the greatest fall of 20 percent from last year.
All of these are caused by the escalating foreclosure. The National Association of Realtors said sale of existing homes account for around 90 percent of the market. The worst decline in median price for existing houses occurred last October with an 11.3 percent fall.
Karl Case, the co-creator of the home-price index, said that cheap homes owned by the low ranked borrowers must be removed from the market via foreclosure auctions for recovery to be possible.
The foreclosure pandemonium also affected construction of new houses. The biggest U.S. house builders, D.R. Horton Inc. has suffered 6 consecutive quarter losses. While Fort West in Texas complained of the 38 percent order failures and 46 percent cancellation scale.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.