Home Prices Drop 18.6 Percent in Feb.

In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record. The Standard & Poor's/Case-Shiller index released Tuesday showed home prices in 20 major cities tumbled by 18.6 percent from February 2008.

Index shows housing prices falling by 18.6 percent in February, but didn't set annual record.

All 20 cities in the report showed monthly and annual price declines, but half recorded annual records. In fact, Phoenix home prices have lost more than half their value since peaking in July 2006.

"We will certainly need a few more months of data before we can determine if home prices are finally turning around," said David M. Blitzer, chairman of the S&P index committee.

Existing home sales fell just 3 percent from February to March, and new home sales seemed to have hit bottom. Consumers overall are becoming more optimistic about the economy.

By J.W. ELPHINSTONE AP Real Estate Writer
NEW YORK April 28, 2009 (AP)

Sources:
ABCNews