Home prices nationwide have fallen to 2002 levels according to the latest figures from the Standard and Poors Case-Shiller Home Price index. Ida Lieszkovszky reports for a while the index showed Cleveland as one of the brighter spots in the post-bubble economy, But now the picture here has grown bleaker.
Two years ago home prices in Cleveland were said to have remained more stable than in some other markets, because they hadn’t gone that high to begin with.
Now, S and P's vice-president, Maureen Maitland says the recession for the housing market has been so bad it's not even taking part in the economic recovery. And while the Case-Shiller Index shows much of the rest of the country has hit 2002 home price levels, Cleveland and a few others cities have dropped below 2000 levels.
"What's happening is across a lot of these markets there's a lot of foreclosure activity, there's a lot of inventory overhang, and the regional economies just aren't good enough."
Cleveland is one of 20 metro areas tracked monthly by Standard & Poors'.
Maitland says the figures represent a second dip in housing prices - following a temporary uptick last year thanks to the first time home-buyer's credit program.
She says she isn't expecting to see a turn-around in home prices any time soon.