Metro Detroit housing prices drop nearly 10% in year

Metro Detroit housing prices drop nearly 10% in year

November 27, 2007

By GRETA GUEST

FREE PRESS BUSINESS WRITER

Metro Detroit home prices have plunged 9.6% during the past year, according to the S&P/Case-Shiller home price index released this morning.

The index data through Sept. 30 also tracked a record decline in national home prices for the quarter, with a 4.5% drop from the third quarter of 2006 and a 1.7% drop when compared to the second quarter.

Robert J. Shiller, chief economist at MacroMarkets LLC, said the national decline was notable for two reasons. First, the third-quarter decline was the largest quarterly decline in the index's 21-year history and second, the year-over-year decline of 4.5% was the second consecutive record low.

"Consistent with prior 2007 reports, there is no real positive news in today's data," Shiller said. "Most of the metro areas continue to show declining or decelerating returns on both an annual and monthly basis."

All 20 major metro areas were in decline in September when compared to September 2006, the data shows. Detroit tied with San Diego for third place among the major U.S. metro areas. Tampa had the largest decline in home prices with an 11.1% fall, and Miami had a 10% decline over the past 12 months.