L.A. home prices keep falling
U.S. home prices fell at a record pace in July, with the Los Angeles area again showing one of the largest declines, according to a widely watched index released today.
The Standard & Poor’s/Case-Shiller index of home prices in 20 U.S. metropolitan areas was down 16.3% in July from the same month a year ago. Los Angeles and Orange County home prices fell 26.2% in July compared with July 2007.
Three metropolitan areas recorded deeper year-over-year declines than Los Angeles: Las Vegas at 29.9%, Phoenix at 29.3% and Miami at 28.2%.
San Diego and San Francisco both saw home price declines of 25% for July from a year ago.
“The Sun Belt continues to be the story,” said David M. Blitzer, chairman of the Standard & Poor’s index committee, noting the greater-than-20% declines in California and Florida.
The Case-Shiller index compares the latest sales of detached houses with previous sales, and accounts for factors such as remodeling that might affect a house’s sale price over time.
From those data, an index score is created to show price changes.
The 20-city July index was down 19.5% from its peak in summer 2006. Los Angeles-area prices in July were 30% below their fall 2006 peak and at roughly the same level as in spring 2004.
In Los Angeles, more expensive homes have declined in value at a slower pace than lower-priced houses, the index showed. Prices for the top-third of the market, homes priced above $586,000, were down 20% in July from their 2006 peak.
The lowest third of the Los Angeles area market, homes priced below $340,000, were down 40% in July from their peak in 2006, the index shows.
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