Data through October reported a decrease in Boston area home prices of 1.4 percent from September, greater than the nationwide monthly decrease of 0.1 percent, according to a closely watched survey.
On an annual basis, however, Boston area home prices are up 1.6 percent, compared with October 2011.
And on a nationwide basis, The S&P/Case-Shiller showed home prices rose 4.3 percent in the 12 months ending in October in the 20-city composite, out-distancing analysts’ forecasts.
Anticipated seasonal weakness appeared as12 of the 20 cities and both composites posted monthly declines in home prices in October.
In 19 of the 20 cities, annual returns in October were higher than September. Chicago and New York were the only two cities with negative annual returns in October.
"The October monthly numbers were weaker than September as 12 cities saw prices drop compared to seven the month before," David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. "The five which turned down in October but not in September, were Atlanta, Dallas, Miami, Minneapolis and Seattle. Among all 20 cities, Chicago was the weakest with prices dropping 1.5 percent, followed by Boston where prices fell 1.4 percent. Las Vegas saw the strongest one-month gain with prices up 2.8 percent."
Annual rates of change in home prices are a better indicator of the performance of the housing market than the month-over-month changes because home prices tend to be lower in fall and winter than in spring and summer. Both the 10- and 20-city composites and 19 of 20 cities recorded higher annual returns in October 2012 than in September.
"Looking over this report, and considering other data on housing starts and sales, it is clear that the housing recovery is gathering strength. Higher year-over-year price gains plus strong performances in the southwest and California, regions that suffered during the housing bust, confirm that housing is now contributing to the economy," he said.
"The smallest recoveries are seen in Boston and New York, two cities in the northeast which suffered smaller losses in the housing bust than the Sunbelt or California," he added.
