Home Prices Drop By 4.5% In 3rd Quarter

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Americans just got a bit poorer in the last three months as home prices dropped 4.5%. This trend has been expected and continues to confound anyone who wants to be optimistic about the economy.

U.S. home prices fell 4.5 percent in the third quarter from a year earlier, the sharpest drop since Standard & Poor began its nationwide housing index in 1987, the research group said Tuesday.

S&P also reported that prices fell 1.7 percent from the previous quarter, the largest consecutive quarterly decline in the index’s history.

The S&P/Case-Schiller quarterly index tracks prices of existing single-family homes across the nation compared with a year earlier.

A separate index that covers 20 U.S. metropolitan areas dropped 4.9 percent in September from a year earlier. A 10-area index decreased 5.5 percent from the previous year.

Even worse news is that no one expects the numbers to rise any time soon. But, like everything else, time will tell.

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