Largest Price Drop on Record

According to the Standard & Poor Case-Shriller National Price Index home prices dropped 4.5 percent in the third quarter of this year when compared to the third quarter of last year.

The S&P Case-Shriller National Home Price Index was created 21 years ago and measures  housing price fluxuations on either the old method using 10 major city housing markets, or the new method of using 20 major city housing markets. The old method analyzes Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Franciso, and Washington, D.C. While the newer one uses the above cities and adds Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and the Tampa Florida housing market.

According to the report released today the 4.5 percent drop was the highest in the S&P Case-Shriller history. Home prices have dropped an average of .9 percent from August of last year until September of this year. It also reported that in the third quarter of this year home prices fell 1.7 percent, when compared to the previous quarter.

To read more about home price drop largest on record head on over to Reuters.