Home prices in 10 US cities see record drop in Nov

NEW YORK: Home prices in 10 major metropolitan areas fell by a record 8.4% in the year through November, Standard & Poor’s said on Tuesday. The decline in the S&P/Case-Shiller Home Price Index topped the 6.7% annual drop for October and was deeper than the 7.1% consensus as reported by economists at Goldman Sachs.

Home prices across big cities have now declined for 11 consecutive months and show little sign of bottoming, Robert Shiller, a founder of the index and chief economist at MacroMarkets, said.

“We reached another grim milestone in the housing market in November,” Shiller said.Falling US home prices in the past year have fueled rising delinquencies and foreclosures as homeowners are unable to get out of costly loans.

Durable goods orders rise in December:Orders for US durable goods rose more than forecast in December, indicating business investment is holding up even as other parts of the economy weaken.

The 5.2% increase in appetite for computers, aircraft and other items made to past several years was the biggest since July, the commerce department said on Tuesady. The 0.5% gain in November was also greater than previously reported. Excluding transportation, demand rose 2.6 %.