Home prices have been dropping more quickly than expected in San Diego and San Francisco, cities that saw a steady appreciation in home prices during the first half of 2010.
Home prices have dropped in 18 of the 20 cities surveyed.
Foreclosures cause a dramatic drop in home prices. Over two million home loans are in foreclosure. About 2.4 million home loans are more than 90 days late.
Las Vegas has the worst housing market and worst economy in America.
Foreclosed properties and other distressed sales are dominating the Tampa, Fla., market, said Stephanie LeFew, owner of Tampa Home Buy Realty. The number of homes there that received a foreclosure notice rose 7 percent in the July-September quarter from the previous quarter, according to foreclosure tracker RealtyTrac Inc.
“Buyers are getting discounts of 50 percent and more,” LeFew said.
Prices there hit their lowest point since 2003, dropping 0.8 percent in September from August, according to the Case-Shiller index. The median price in Tampa was $115,700 in the third quarter, according to Internet real estate service Zillow.
Miami and Phoenix are also being greatly affected by foreclosures. One in every 41 Miami households received a foreclosure filing in the July-September quarter. Home prices there declined 1.2 percent from August to September.
In Phoenix, the foreclosure rate was one in 44 in the July-September quarter; home prices fell 1.5 percent from August to September.