US home prices slump as crisis exacerbated

Unless you are selling a house in Washington or buying one in Minnesota there is little cause to celebrate the state of the U.S. housing sector.

Despite ultralow borrowing rates, experts say a steady flow of repossessed homes onto the market, tighter bank lending rules and high unemployment have kept prices at rock bottom.

According to a widely watched housing index, prices in 20 major metropolitan areas fell 3.6 percent in the 12 months to March, down from already suppressed levels.

In the northern city of Minneapolis, prices fell by a staggering 10 percent during the year.

That has put the Minnesota city at the sharp end of a sectoral slump that has hit almost the entire nation. Only in the capital, Washington, did prices rise on a year-over-year basis, according to the S&P/Case-Shiller index.

“Prices of houses are now below the lows reached during the depths of the economic crisis,” said economist Joel Naroff.

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