Home prices in the 20 largest metropolitan cities declined 0.3% in August, according to the seasonally adjusted results from the monthly S&P homes report [.pdf]. Only 2 of these metropolitan cities did not suffer a decline of home prices in August, which were New York and Washington, but at the same time these 2 cities did not improve, but simply had no change. The city with the greatest decline in home prices during August was Phoenix with a 2.2% drop. Home prices in these 20 metropolitan cities have now suffered declines for 2 consecutive months. Contrarily, the 17 months prior to July (February 2009 to June 2010) saw home prices increase between 4.2% and 4.6%. Therefore, we have seen 17 months of consecutive increases followed by 2 months of consecutive declines. While these declines have been slight, 0.3% in August and 0.1% in July, these facts contribute to an increasingly fragile housing market, rather than showing a sign of light.
As has been discussed in the past, certain aspects of the housing market perpetuate this deceleration of home prices. Within that linked article are the reasons that led Left and Right News to correctly project a deceleration of home prices in July, despite there being 17 months of consecutive increases.