Home prices weakened in September

[Pale Blue Dot]

Source: L.A. Times

Home prices cooled more than expected in September, falling 0.7% from August, according to data released Tuesday, indicating a sustained recovery in the nation’s housing market is probably some time away.

Prices of previously owned single-family homes rose 0.6% in September over the same time last year, according to the Standard & Poor's/Case-Shiller index of 20 metropolitan areas. That was worse than most economists expected, according to Bloomberg News, and the smallest year-over-year gain since February, when the market began to recover.

The housing market has weakened considerably since federal tax credits of up to $8,000 drove sales during the spring and first-time buyers flooded into the market, boosting sales of entry-level homes. But economists said more was at play than simply the lack of government stimulus.

“The national economy is certainly the No. 1 issue for housing,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor's. “Additionally, there is a large supply of houses on the market and further, hidden, supply due to delinquent mortgages, pending foreclosures or vacant homes.”

Out of the 20 metro areas measured by the index, 18 posted declines in September, when the data was left unadjusted for seasonal differences. Only Las Vegas, up a meager 0.1%, and Washington, up 0.3%, posted increases.

Read more: http://latimesblogs.latimes.com/money_co/2010/11/home-prices-weakened-in-september.html