WASHINGTON (MNI) – The following is excerpts from the text of the
September S&P/Case-Shiller home price indices, released November 29:

Data through September 2011, released today by S&P Indices for its
S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home
prices, show that nationally home prices did not register a significant
change in the third quarter of 2011, with the U.S. National Home Price
Index up by only 0.1% from its second quarter level. The national index
posted an annual decline of 3.9%, an improvement over the 5.8% decline
posted in the second quarter. Nationally, home prices are back to their
first quarter of 2003 levels.

As of September 2011, the annual rate of change in 14 of the 20
MSAs and both Composites, covered by S&P/Case-Shiller Home Price
Indices, improved versus August. Atlanta, Las Vegas, Los Angeles, San
Francisco, Seattle and Tampa recorded lower annual declines in September
compared to August. Detroit and Washington DC were the only two MSAs to
post positive annual rates of +3.7% and +1.0% respectively. Detroit has
now recorded three consecutive months of positive annual rates.

“Home prices drifted lower in September and the third quarter,”
says David M. Blitzer, Chairman of the Index Committee at S&P Indices.
“The National Index was down 3.9% versus the third quarter of 2010 and
up only 0.1% from the previous quarter. Three cities posted new index
lows in September 2011 – Atlanta, Las Vegas and Phoenix. Seventeen of
the 20 cities and both Composites were down for the month. Over the last
year home prices in most cities drifted lower. The plunging collapse of
prices seen in 2007-2009 seems to be behind us. Any chance for a
sustained recovery will probably need a stronger economy.

“Detroit and Washington DC posted positive annual rates of change
and also saw an improvement in these rates compared to August. Only New
York, Portland and Washington DC posted positive monthly returns versus
August. It is a bit disturbing that we saw three cities post new crisis
lows. For the prior three or four months, only Las Vegas was weakening
each month. Now Atlanta and Phoenix have fallen to new lows too. On a
monthly basis, Atlanta actually posted a record low rate of -5.9% in
September over August. The markets are fairly thin, and the relative
lack of closed transactions might be exacerbating the downside. The
relative good news is that 14 cities saw improvements in their annual
rates of change, versus the six that weakened.”

Atlanta, Las Vegas and Phoenix posted record index lows with
September’s data. While Phoenix home prices are almost back to their
January 2000 levels, Atlanta and Las Vegas prices have fallen below
these levels.

Since its launch in early 2006, the S&P/Case-Shiller Home Price
Indices have published, and the markets have followed and reported on,
the non-seasonally adjusted data set used in the headline indices. For
analytical purposes, S&P Indices does publish a seasonally adjusted data
set covered in the headline indices, as well as for the 17 of 20 markets
with tiered price indices and the five condo markets that are tracked.

** Market News International Washington Bureau: 202-371-2121 **

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