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It was reported today that the S&P’s Case-Schiller Home Price Index, a widely-watched measure of 20 major metropolitan areas, fell 19% in January from a year earlier. That was the highest drop the index has ever reported.

Areas that have fallen the most are now valued at about half of what they were during the peak in 2006. None of the 20 metro areas increased in price. Thirteen of the twenty reported a record drop. Phoenix experienced the greatest decline, down 5.5% from December and 48.5% from its peak in June 2006. Las Vegas, Miami, San Francisco and San Diego are not far behind. The city with the smallest decline is Dallas, TX. However, unlike most other cities, Dallas never had a boom, so it did not have as far to fall. Click “Read More” to see the video.

The gloom-and-doom of this report and others like it are only bad news if you need to sell your property in the short term. However, if you have the means to invest in real estate or if you are a first time home buyer or if you are considering moving up from your existing property, this comes as welcome news. Many analysts are predicting a bottom to the price decline sometime this year. Pointing to the vibrant activity at the lower end of the market (under $600,000 here in Orange County), many believe we are already there. Further, interest rates and government-sponsored incentives make a compelling case for would-be home buyers and investors.