According to the latest S&P/Case-Shiller report released today, home prices in Miami dropped 1.2 percent in the third quarter of 2010 compared to last quarter. Nationally, the U.S. Home Price Index dropped two percent this quarter.
After rising 4.7 percent in the second quarter of this year, the two percent national decline leaves prices 1.5 percent below their levels in 2009. Of the 20 metro areas analyzed, 18 declined in average prices from last quarter, with the exception of Las Vegas and Washington D.C. Las Vegas rose 0.1 percent and Washington D.C. rose 0.3 percent.
“While some of the bad numbers may reflect the end of the government’s tax incentive for first time homebuyers, there are other problems weighing on the housing market,” says Standard & Poor’s Chairman of the Index Committee, David M. Blitzer. “The national economy is certainly the number one issue for housing. Additionally, there is a large supply of houses on the market and further, hidden, supply due to delinquent mortgages, pending foreclosures or vacant homes.”
According to a report from CoreLogic, Miami leads the nation in supply of these distressed homes, with the West Palm Beach, Fort Lauderdale and Orlando markets also in the top ten. Tampa Bay reached a new low in price index this quarter, down 4.3 percent from 2009 and 0.8 percent from Q2 of this year.
“Other than Tampa, FL, there are no new lows this month but many analysts will argue that a double dip will be confirmed before spring,” says Blitzer.
For more information, download the entire S&P/Case-Shiller report.