11:00AM New York – Home price index tracking metro areas declined at a sharpest rate in the fourth quarter.

A controversial index measuring home prices declined in the fourth quarter across the nation and metro index fell even deeper. The S&P Case Shiller index fell 8.9% in the fourth quarter of 2007 from a year ago. The index declined for the year 9.8% and another index that tracks prices in the top 20 cities declined 9.8% fell 9.1%.

“We reached a somber year-end for the housing market in 2007,” says Robert J. Shiller, Professor at Yale University and Chief Economist at MacroMarkets LLC. “Home prices across the nation and in most metro areas are significantly lower than where they were a year ago.

Wherever you look things look bleak, with 17 of the 20 metro areas reporting annual declines and the remaining three reporting flat or moderate growth rates. Looking closely at these negative returns, you will see that 14 of the metro areas are also reporting record lows and eight are in double digit decline. The monthly data paint a similar picture, with all metro areas now reporting at least four consecutive negative monthly returns.”

Miami remains the weakest market, reporting a double-digit annual decline of 17.5%, followed by Las Vegas and Phoenix with declines of 15.3% each.

In December, San Francisco slipped into negative double-digit territory with an annual return of 10.8%. Charlotte, Portland and Seattle are the only three metropolitan areas still experiencing positive annual growth rates; however, Seattle prices rose only 0.5%, an almost flat growth rate.