Housing market fails to recover as property in America sees a double dip price falls

One of the key measures of the housing market in the USA pushed below its previous low in March 2011, confirming that the American housing market is experiencing a ‘double dip’ in house prices.  The index of house prices in America’s largest cities fell again in March, with the Los Angeles Times reporting that the figures have pushed ‘past a low set during the worst of the Great Recession.’

Property in USA hits record low

In March 2011, the Standard & Poor’s/Case-Shiller index of 20 cities pushed below a previous low hit in April 2009 showing that property in the USA is still suffering from falling prices.  The index is one of the main measures of the American housing market and, according to the LA Times ‘casts further doubt about the future of the housing market’s recovery.’

David Blitzer, chairman of the S&P index committee, said: “This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation.  Home prices continue on their downward spiral with no relief in sight.”

Prices of property in the USA fall by 3.6 per cent in one year

The Case-Shiller index reported that property prices in American fell by 3.6 per cent between March 2010 and March 2011 and 0.8 per cent from February.  The fall has been attributed to weak demand for homes and a strong market presence for cheap foreclosures and other so-called distressed properties.

The index found that twelve of the twenty cities, including Chicago, La Vegas, Miami, Detroit, New York, Atlanta and Cleveland showed fresh low house prices in March.

The LA Times also reported that ‘other than Washington, all of the major cities tracked by the index posted a year-over-year decline.’  Prices in San Francisco fell by 5.1 per cent whilst property values in Los Angeles were down 1.7 per cent.