Further price drop for US homes.

The price of existing homes in the 10 largest US cities fell by 0.6% in July – the steepest drop in 16 years – a survey has found. The data, from S&P/Case-Shiller home price index, put the annual price fall in those cities at 4.5%.

A broader survey of 20 cities found that prices fell in 15 of them, dropping an average of 0.4% from June to July, and down 3.9% on July 2006.

Large numbers of unsold existing and new homes have hit prices.

“The further deceleration in prices is still apparent across the majority of regions,” said Robert Shiller, chief economist at MacroMarkets LLC.

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