Metro housing prices sink in September

By Michelle E. Shaw

The Atlanta Journal-Constitution

It is no surprise the S&P Case-Shiller Index of home prices for September showed a decrease for metro Atlanta, continuing a trend since the spring.

The shocker may be how far the index has fallen: to October 2000 levels.

So if you bought your home in 2000, it is probably worth about what you paid for it then, said Emory University professor Jim Grissett, who specializes in real estate.

“A lot of asset prices are moving back to 2000-era levels,” he said. “The first time the S&P 500 was at the level it is today was around July 1998, which for the purpose of this discussion is in that time frame.”

The Case-Shiller Index uses repeat sales data to arrive at a measure of appreciation compared to a base value of 100 in January 2000. Metro Atlanta's seasonally adjusted score in September of 105.84 was the lowest since October 2000, when it was 105.41. The peak was 136.06 in April 2007.

The September number was down nearly 1 percent from August and 3 percent from September 2009. Nationally the 20-city index fell nearly 1 percent from the month before but is still up .5 percent from September 2009.

Is this good news?

No. The index fell for the fourth straight month, undoing hopes that prices were firming in the spring, when federal tax credits spurred sales. The potential good news remains that the index declines remain mild compared with the National Association of Realtors September single-family home sales report. The Realtors' results, based on monthly closings and produce a median price, showed a 11.2 percent price drop in the metro area for September from a year earlier.

What's next?

On Dec. 22, the National Association of Realtors will release its home prices report for November. Based on monthly trends, don't count on holiday cheer.