A survey has shown that home prices in the main US cities fell in August, but recorded the smallest drop in 19 months. The Standard & Poor's/Case-Shiller index showed an 11.3% annual decline in home prices in 20 major metropolitan areas - the smallest drop since January 2008. Analysts had expected an 11.9% fall.
On a seasonally adjusted basis, prices rose 1% from July to August this year, following a 1.2% gain in the June-July period. In the 10 top markets, prices fell 10.6% in August from a year ago. 'Broadly speaking, the rate of annual decline in home price values continues to improve,' said David Blitzer, chairman of the index committee at Standard & Poor's.
US home prices contracted after a severe home mortgage meltdown that sparked a financial crisis, plunging the economy into a recession in December 2007. The market has been benefiting from a tax credit of $8,000 for first-time buyers, which expires on November 30. Many buyers are rushing to sign contracts to be sure to close the deal before the credit expires