U.S. home prices dropped rapidly in October

‘Double-dip almost here’

Home prices in 20 key U.S. cities fell by 1.3 per cent in the month of October, according to S&P/Case-Shiller. That’s a 15 per cent decline on an annualized basis. “The double-dip is almost here,” David Blitzer, chairman of the Index Committee at rating agency Standard & Poor’s said Tuesday. House prices in the U.S. have fallen for four months, partly due to the expiry of tax incentives for first time buyers. Analysts had predicted a decline, but some were surprised by the magnitude of the fall. Prices were down in all 20 cities studied. Sales volumes were down 25 per cent in October compared with 12 months earlier. The inventory of homes grew by 50 per cent year over year.

CNN

tags:economy