"Values dropped 3.9 percent in the 12 months through July, steeper than the 3.4 percent decrease in June, according to the S&P/Case-Shiller home-price index. The index declined in January for the first time since the group started the measure in 2001, and has receded every month since then.
Stricter lending standards and reduced demand are prolonging the housing slump, now entering its third year. Prices may continue to fall as homes stay on the market longer, economists said. Diminished housing wealth may spur households to pare spending, hurting economic growth.
The housing slump ``doesn't seem like it will go away any time soon,'' said Michael Gregory, a senior economist at BMO Capital Markets in Toronto, who forecast the index to drop 4.1 percent. ``As far as consumers go, this is another sort of pall over'' their ability to borrow against the value of their homes, he said. (Bloomberg 9/25/07)
The Washington, DC area continued to experience price declines. According to the Case Shiller Index the year over year July 2007 price change was -7.2%. With the the monthly price declines accelerating from earlier this year. The housing market is not 'bottoming out!'
See Also: Home Prices Post Biggest Drop in 16 Years (Calculated Risk)