U.S. housing prices sink to new low

May 31, 2011 11:14AM

National housing prices have hit a new low, and economists believe the descent is far from over. House prices fell 4.2 percent in the first quarter of 2011, according to Standard & Poor’s Case-Shiller U.S. National Home Price Index, following a 3.6 percent decline in the first quarter of 2011. The index’s 20-city composite now stands at 138.16 (compared to the January 2000 basis of 100), more than 1 point below the previous recession low of 139.26 recorded in April 2009, and equal to national housing values in mid-2002. “This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation,” said David Blitzer, chairman of the Index Committee at S&P Indices. “Home prices continue on their downward spiral with no relief in sight.” Blitzer also said that excluding the first-time homebuyer tax credit there has been “no recovery or even stabilization in home prices during or after the recent recession.” Last year, The Real Deal evaluated the Shiller index’s reliability.TRD