American house prices fell by their fastest rate on record last month amid deep pessimism over the economy and the expectation of the worst Christmas shopping figures for 40 years.

The data reveal that the world's biggest economy shows no sign of recovery. This will increase pressure on Barack Obama, the US President Elect, to slash the rate of income tax as soon as he enters the White House on January 20.

According to the S&P Case-Shiller index - widely seen as the most authoritative measure of residential property values across America - house prices in the 20 US cities it surveys plunged 18 per cent in October, compared with the same month the year before. Prices fell 2.2 per cent in October against September.

Economists pointed out that the rate of decline in property values is accelerating rapidly and is expected to increase further next year because the market is overwhelmed with ten months' oversupply of unsold homes.

American house prices fell by their fastest rate on record last month amid deep pessimism over the economy and the expectation of the worst Christmas shopping figures for 40 years.

The data reveal that the world's biggest economy shows no sign of recovery. This will increase pressure on Barack Obama, the US President Elect, to slash the rate of income tax as soon as he enters the White House on January 20.

According to the S&P Case-Shiller index - widely seen as the most authoritative measure of residential property values across America - house prices in the 20 US cities it surveys plunged 18 per cent in October, compared with the same month the year before. Prices fell 2.2 per cent in October against September.

Economists pointed out that the rate of decline in property values is accelerating rapidly and is expected to increase further next year because the market is overwhelmed with ten months' oversupply of unsold homes.

SOURCE: The Times