How Home Prices Fared in 20 Markets in 2007

National home prices fell 8.9% in the full-year 2007, according to figures released recently by the Standard & Poor's/Case-Shiller Home Price Index.

"Wherever you look things look bleak," says Robert J. Shiller, chief economist at MacroMarkets LLC, which recently sold its rights in the indices.

Of the top 20 markets tracked by the index, 17 of the metro areas reported annual price declines and the remaining three reporting flat or moderate growth rates. Also 14 of the metro areas are reported record lows and eight are in double-digit decline.

Here's a look at these markets:

Atlanta

Prices fell 3.4% year over year in Atlanta. Some listings expire or are withdrawn because sellers are not getting offers, but new home builders don't have the luxury to unlist homes. "Builders have an inventory overhang because we can't take our homes off the market," says Stephen Baldwin, chief financial officer for Bowen Family Homes and president of Greater Atlanta Home Builders Association.

The number of new homes on the market has dropped about 20%, but the sales rates have declined causing a nearly 11-month supply on the market, he says. "Builders will sell for substandard or no margins at this point. You have to overcorrect to get buyers to commit."

Boston

The median home price for Bean Town only dropped 1.9% in the fourth quarter to $380,700 from $388,000 a year prior. "We are beginning to see the first signs of a recovery in Boston," says Chris Remmes of Keller Williams Realty. "In 2007 both average and median prices were up 11.2% and 4.4% respectively in the Downtown condo market (Back Bay, Beacon Hill and the South End). Other neighborhoods in the city have seen prices stabilize. Inventory is down in most sections of the city and by as much as 45% in Charlestown."

Charlotte

Charlotte, Portland and Seattle are the only three MSAs still experiencing positive annual growth rates. In Charlotte, there were 27,228 homes listed for sale with the Multiple Listing Service as of the first week in February, according to the Carolina Multiple Listing Service. The average price for the last two quarters has been between $270,000 to $285,000, and is expected to rise for the first quarter of 2008, says real estate agent Chip Fisher of Re/Max Platinum. "New construction has diminished slightly due to foreclosures and the average days on market was 76 in the last quarter of 2007 and expected to rise just slightly in the first quarter of 2008."

Chicago

The Chicago metro area had a modest median price decline of $261,000 in the fourth quarter from $268,100 a year prior. "Builders continue to move inventory by offering buyers aggressive price concessions or generous upgrades," says Jim Merrion of RE/MAX Northern Illinois. He says the residential market is stronger in the city of Chicago than in the low to midpriced suburbs. "Upscale suburban areas continue to do well."

Cleveland

Prices fell 6.3% in Cleveland. "We had a god spurt here this summer and we had 12 showings in December on our model," says homebuilder and real estate John Gazzo of Gazzo Realty. "We have homes under construction in the mid-500s and I don't feel we have the same problem as those who are in the low 300s and low 200s."

Dallas

Dallas only had a modest price decline of 2.4%. "Existing homes in Dallas have held their pricing fairly well relative to other markets," says Todd Tramonte, with Assist 2 Sell Buyers & Sellers Realty. "We are experiencing no major losses, but very little in the way of appreciation as well."