US prices of new homes for sale keep falling

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Creative Commons License photo credit: Zack Sheppard
The prices of homes for sale in the US are still falling rapidly, the latest market figures from a leading analysis company have shown.

The S&P Case-Shiller home price indices for September show average prices are down in every major region it looks at, suggesting investment opportunities may still be available in abundance.

Statistics show there has been a record 16.6 per cent decline in prices in the third quarter of 2008 compared to the third quarter of 2007.

Phoenix, Arizona, and Las Vegas, Nevada, were the regions showing the biggest falls of 31.9 per cent and 31.3 per cent respectively.

David Blitzer, chairman of the index committee at S&P said:

“The turmoil in the financial markets is placing further downward pressure on a housing market already weakened by its own fundamentals.”

The Royal Institution of Chartered Surveyors (RICS) said new initiatives announced by the US Treasury designed to improve loan availability could eventually help prop up prices, but would take time to filter through.

The S&P Case-Shiller home price indices are published on the last Tuesday of each month and track the prices of typical single family homes in a range of city areas.

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