No Sign of Abatement for US House Prices

US Home Prices continued their downward spiral in December 2008. On a year over year basis, both the the 10 city and 20 city indexes showed of -19.2% and -18.5%. Both indices have declined for 29 consecutive months. Both the 10 City and 20 City indices are now back to levels last seen in the fourth quarter of 2003.


Only two metro areas have fallen less than -10% from their peak whilst half of the 20 metro areas have experienced declines of -20% or more and 5 have fallen more than -40%. Year over year declines have stopped accelerating but US house prices still show no signs of stabilizing in the near term.