Home prices in the U.S. opened 2011 with the seventh consecutive monthly decline to reach the lowest level in almost eight years, confirming the ongoing weakness of the housing market, according to The Wall Street Journal. On Tuesday, the Standard & Poor’s/Case-Shiller index of home prices in 10 major metropolitan areas was seen 0.9% lower during January from the previous month and 2% lower year-over-year, moving to the lowest level since 2003. The seasonally-adjusted index fell 0.2%, as did the same index for the wider 20-city index, which slipped 1% on the month and 3.1% year-over-year.
The Chairman of the S&P’s index committee, David Blitzer, said the data reinforce the negative trend seen in recent reports on housing starts and sales activity, “The housing market recession is not yet over, and none of the statistics are indicating any form of sustained recovery.” He added, “At most, we have seen all statistics bounce along their troughs.” The high level of unemployment and large supply of foreclosed homes are both seen as factors weighing on the housing market, and Blitzer warned, “The feared double-dip recession my be materializing.”