by Calculated Risk on 7/29/2008 11:54:00 AM

As I noted this morning, the rate of monthly price declines has slowed a little. Update: Note there is some seasonality too.

Click on graph for larger image in new window.

This graph shows the annualized monthly price changes for the Case-Shiller Composite 20 since the beginning of 2006.

The rate of price declines has slowed over the last couple of months, but prices were still falling at a 8.9% annual rate in May (from April).

The second graph shows the annualized month-to-month price declines for Los Angeles in the early '90s.

This shows that price declines tend to come in surges and we shouldn't read too much into the slowing monthly rate of decline.

In general prices are still too way too high, and will continue to fall for some time.