Residential property values in the US declined by 4.2 per cent during the first three months of the year, following a 3.6 per cent drop at the end of 2010. This is according to data released by Standard and Poor's for its S and P/Case-Shiller 1 Home Price Indices.
The firm explained that the nationwide index now stands at the same level seen in mid-2002 - a new post-recession low. An annual decline of 5.1 per cent compared to the same period of 2010 was also seen.
Minneapolis posted a double-digit ten per cent annual decline, the first market to be back in this territory since March 2010. Conversely, Washington DC was the only city where home prices increased on both a monthly ( 1.1 per cent) and annual ( 4.3 per cent) basis.
"The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers' tax credit. Excluding the results of that policy, there has been no recovery or even stabilisation in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains," David Blitzer, chairman of the Index Committee at S and P Indices, said.