Metro Detroit remains the worst housing market in nation

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Metro Detroit home prices were down 6.6% annually through June, as the region continues to struggle in its position as America’s weakest market, according to the S&P/Case-Shiller indices.

Yet, prices gained a seasonal boost, rising 2.2% in June as compared to May data for the metro area, according to the data released today.

While the rest of the country returned to 2003 home pricing levels, metro Detroit and Las Vegas are the only two major metropolitan areas where prices were at pre-2000 levels.

The seasonal rise should “wear off in the fall” and prices will likely drop again as demand wanes, said Patrick Newport, U.S. economist with IHS Global Insight.

Newport said in a statement that seasonally adjusted prices were down in 11 cities.

“Detroit, where prices have dropped nearly 50% since peaking in late 2005, remains, by far, the weakest market,” he said. “Detroit avoided a big run-up in housing prices during the boom years, but was hit hard by the recession.”