The S&P Case-Shiller 20-city index of home prices fell 18.0% y/y and the 10-city index showed a 19.1% y/y drop through October. All cities showed greater decline in home prices in October relative to September, and while the index is not seasonally adjusted and October is typically a time of softer pricing, this same pattern was seen in the annual measures. All 20 cities saw prices decline, with New York posting the smallest monthly decline of 0.9% and Detroit registering the largest drop at 4.5%. The smallest annual decline was in Dallas where home values fell 3.0%, and Phoenix saw the largest drop at 32.7%. The acceleration in the financial crisis this fall has hit the housing market hard, with sales, building activity and prices all taking another leg down in the wake of the market turmoil. We expect this pattern to persist in the months ahead.