U.S. home prices plummet 10.7% in past year

Widespread price declines

Sixteen of the 20 reporting metropolitan statistical areas posted record low annual declines, 10 of which were in double-digits. Further, only one city, Charlotte, North Carolina, recorded a January 2008 price increase of 1.8%.

Compared to December 2007, among major U.S. cities, in January 2008 prices fell 0.9% in New York, 3.7% in Los Angeles, 2.2% in Chicago, 2.9% in San Francisco, 2.5% in Washington, 2.7% in Miami and 1.8% in Seattle.

Among major U.S. cities, year-over-year prices fell 5.8% in New York, 16.5% in Los Angeles, 6.6% in Chicago, 13.2% in San Francisco, 10.9% in Washington, and 19.3% in Miami and 1.3% in Seattle.

'Negative report'

Economist Steve Affinito told BloggingStocks Tuesday the report can be summed up in one word: negative. "It's a negative report, pure and simple. Home inventories are rising and prices are falling almost everywhere," Affinito said. "The U.S. housing recession is deepening."

Further, many economists expect home inventory levels to grow further, through at least Q2 2008, as the U.S. experiences the 'second wave' of mortgage resets where variable interest rate mortgages will be reset to higher levels later this year. Those new interest rates are likely to result in a higher foreclosure rate, hurting the nation's ability to work-off high home inventory levels in many U.S. metropolitan areas.