A survey of home prices in 20 U.S. metropolitan areas fell in October by the largest amount in at least six years. According to S&P/Cash-Shiller, home prices have fallen every month this year, with the largest decrease coming in October. Home values fell 6.1% from October 2006, led by 12% drops in Miami and Tampa, Florida. Only three markets (Seattle, Portland, Oregon, and Charlotte, North Carolina) showed an increase in prices from a year ago. The Denver metro area saw price declines of 1.8% from a year ago.
Evaporating home equity increases the risk that some homeowners will walk away from those properties that are worth less than their mortgage balance. Tighter financing requirements and increasing foreclosures point to a rocky housing market for 2008. For additional details on the housing market from Bloomberg, please click here. For helpful suggestions for home buyers and sellers, click here for an article from Money magazine.