
According to the S&P/Case Shiller Home Price index, after four months of consecutive home price gains, the month of October showed no change. The home price index covered 20 of the largest metropolitan areas, Tampa, Hillsborough County, took the biggest hit, with prices falling 1.6% from September.
David Blitzer, the chairman of Standard & Poor's Index Committee stated "Coming after a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip." Blitzer suggested that it's the amount of foreclosures that are creating the problems with the home prices and in Tampa, over 1/3 of the sales in October involved distressed and foreclosed properties. The decline in prices appears to coincide with the rush to close by the original November 30th deadline for the first-time home buyer tax credit, with sellers taking lower prices in an effort to close deals quickly.
Mike Larson, Weiss Research analyst, suggests "In most of the hardest-hit markets, price declines are moderating." The depleting supply in the real estate inventory is helping to stabilize the market. "Inventories are plunging on the new-home side and going down for existing homes," Larson said.