Further Weakening in Home Prices Says the S&P/Case-Shiller Inex (PHM, LEN, BZH, HOV, TOL)

The S&P/Case-Shiller Home Price Index showed further declines in the prices of existing single family homes across the United States, marking the 8th consecutive month of negative annual returns and the 21st consecutive month of decelerating returns.

The 10-City Compostive's annual decline of 5.0% markets the greatest decline since June of 1991.
Robert Shiller, Chief Economist at MacroMarkets LLC painted a bleak picture of the housing market. "At both the national and metro area levels, the fall in home prices is showing no real sign of a slowdown or turnaround. Year-over-year and monthly price returns are continuing to either move deeper into negative territory or are experiencing persistent diminishing returns."

In essence, he said there is no positive returns to report as most of the metro areas are showing declining value. This will continue to hurt homebuilders such as: Lennar (NYSE: LEN), Pulte (NYSE: PHM), Beazer (NYSE: BZH), Hovnanian (NYSE: HOV), Centex (NYSE: CTX), D.R. Horton (NYSE: DHI), Toll Brothers (NYSE: TOL) and KB Home (NYSE: KBH).

The continued decline will probably continue into the winter months.

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