US home prices fall unexpectedly in 3 months ending Oct. 2011 over previous year-Bloomberg

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12/27/11, "U.S. Home Prices Fell More Than Forecast," Bloomberg, T. Homan

"Residential real estate prices dropped more than forecast in the year ended October, showing a broad-based decline that indicates the U.S. housing market continues to be

• weighed down by foreclosures.

The S&P/Case-Shiller index of property values in 20 cities dropped 3.4 percent from October 2010 after decreasing 3.5 percent in the year ended September, the New York-based group said today. The median forecast of 27 economists in a Bloomberg News survey projected a 3.2 percent decrease.

The real-estate market is bracing for another wave of foreclosures that may keep pressure on home prices, indicating any housing recovery will take time to develop....

Stock-index futures held earlier losses after the report....

Atlanta and Las Vegas posted new post-peak lows in October, the report showed. ...

Eighteen of the 20 cities in the index showed a year-over- year decline,

• led by a 12 percent drop in Atlanta. ...

Federal Reserve officials reiterated at a meeting this month that they will keep their benchmark interest rate near zero until at least mid-2013. The central bank in September decided to reinvest maturing housing debt

• into new mortgage- backed securities
  
• instead of Treasuries."

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