U.S. home prices plunge in 1st quarter, hit 2002 values

NEW YORK - Housing prices across much of the nation are down to 2002 levels, according to an index released yesterday.

The Standard & Poor's/Case-Shiller National Home Price index reported home prices tumbled 19.1 percent in the first quarter, the most in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.

But in cities across the country, home prices varied dramatically, depending on affordability, foreclosure activity, and the local economy. The bottom may be in sight in some markets, but nationally home values are expected to decline - though at a slower pace - for the rest of the year.

"By our estimation, the composite 20-city index is perhaps two-thirds of the way through its ultimate total decline in this cycle," according to Joshua Shapiro, chief U.S. economist for MFR Inc. Philadelphia is not among the cities surveyed.

In Detroit, the survey found, homes are worth what they sold for in 1995. And while that is good news for home buyers, the implosion of the auto industry and economic fallout mean fewer buyers have the money to qualify for a mortgage.

In Phoenix and Las Vegas, where prices have plunged by half since their peaks, home values have receded to levels not seen since the beginning of the real estate boom.

In Phoenix, prices are at early 2001 levels, and Las Vegas values hover at mid-2002 prices.

Home values in Charlotte, N.C.; Portland, Ore.; and Seattle are steady at 2005 prices, the best showing of all 20 cities in the Case-Shiller report. All three were some of the last to fall into the housing slump.

The Case-Shiller report offered other hopeful signs the worst may be over for some cities. Denver prices posted an increase over February, while Dallas prices were flat.

Also, the rates of annual decline for Case-Shiller's 10- and 20-city indexes slowed in March, the second straight month they did not set record price drops.