Housing market drops again

The Standard and Poor's Case-Shiller indices show that the U.S. National Home Price Index fell by 4.2 percent in the first quarter of 2011. The index had fallen 3.6 percent in the previous quarter and this new low is a 5.1 percent drop from the same time period last year.

"Home prices continue on their downward spiral with no relief in sight," said David Blitzer, spokesman for Standard and Poor's. "Since December 2010, we have found an increasing number of markets posting new lows. In March 2011, 12 cities - Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa - fell to their lowest levels as measured by the current housing cycle."

While more people were moving into new homes during 2009 and 2010, experts believe that was a direct result of the homebuyer tax credits, which expired last April, according to CNNMoney.

According to the S&P report, only Washington D.C. posted a home-price gain, with a growth of 4.3 percent over the last year. Prices in Minneapolis dropped the most, as they fell 10 percent in the state.  

More News