Although still in negative territory, the annual rate of home-price decline improved last month in the 10-City and 20-City Composites tracked as one of the S&P/Case-Shiller Home Price Indices released yesterday.  The 10-City and 20-City Composites declined 10.6 percent and 11.3 percent, respectively, in August compared to the same month last year. Nineteen of the 20 metro areas and both composites showed an improvement in the annual rates of decline in August compared with the previous month.

“Broadly speaking, the rate of annual decline in home price values continues to improve” said David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s.  “While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. California, in particular, has seen some real positive prints in recent months.

“Once again, however, we do want to remind people of the upcoming expiration of the Federal First-Time Buyer’s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices,” said Blitzer.

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