Real Estate News: Home Prices Decline

U.S. home prices dropped in September from a month earlier and the rate of decline showed signs of accelerating, according to the S&P Case-Shiller home-price indexes. Third-quarter prices were also down.

Separately, U.S. consumers brightened their moods in November–a good omen for holiday shopping, according to a report released recently.

The indexes, based on the three-month averages of home prices, had fallen in August for the first time in four months, a delayed response to the housing-market weakness following the expiration of federal home-buyer tax credits in April.

Recent data suggest would-be buyers are sitting on the sidelines amid falling prices, high unemployment and worries about flaws in foreclosure documents. The National Association of Realtors said last week that sales of previously occupied homes decreased 2.2% in October.

The economy continues to weigh on the housing market, along with the large supply of houses and "hidden" supply from delinquent mortgages, pending foreclosures or vacant homes…" according to David Blitzer, chairman of S&P's index committee.