The S&P/Case-Shiller Home Price Indices report for September 2008 was released while I was in Australia [yes, I'm that far behind in current events]. It "shows continued broad based declines in the prices of existing single family homes across the United States, a trend that prevailed since 2007."
“The turmoil in the financial markets is placing further downward pressure on a housing market already weakened by its own fundamentals.” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “All three aggregate indices and 13 of the 20 metro areas are reporting new record rates of decline. Looking at the returns of the U.S. National Index, prices are back to where they were in early 2004. As of September 2008, the 10-City Composite is down 23.4% from its peak, the 20-City Composite is down 21.8% and the National Composite is down 21.0%.”
While August's report gave the impression that DC homes prices may have hit bottom, September's shows the market has resumed its decline. The rate of monthly decline - the acceleration - increased significantly. Effectively, the DC area's home price index has fallen to slightly above June 2004, but below July 2004.
The charts below reflect home price data for the Washington, DC MSA.