A widely watched index of US home prices fell 11.4 per cent in January, its steepest drop since data for the indicator was first collected in 1987. The decline reported today in the Standard & Poor’s/ Case-Shiller index means prices have been growing more slowly or dropping for 19 consecutive months. The index tracks the prices of single-family homes in 10 major metropolitan areas in the US.

The broader 20-city composite index also fell, dropping 10.7 per cent in January from a year ago. That makes it the first time both indexes dropped by double-digit percentages. “Home prices continue to fall, decelerate and reach record lows across the nation,” said David Blitzer, index committee chairman at S&P. “No markets seem to be completely immune from the housing crisis.”

Blitzer said all 20 cities S&P tracks have seen dropping prices for five consecutive months, when compared to the prior month. What’s more, the declines are growing in severity, with 13 of the 20 cities reporting their biggest single monthly decline in January. The worst performing markets are Las Vegas and Miami, which both reported 19.3 per cent drops. Charlotte, North Carolina, squeaked by as the only gainer, with a 1.8 per cent rise in January.

Economists have predicted a 15 to 20 per cent yearly decline in housing prices, so the Case-Shiller results are not far off expectations, said Global Insight’s chief US economist, Brian Bethune. “I wouldn’t be looking for a pattern of improvement until April, May or June,” he said. Washington, DC, and Minneapolis both slipped into negative double-digit territory for the first time in January, recording 10.9 per cent and 10 per cent drops compared to last year.

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