The value of U.S. residential units continued to decline in October and is now down almost 20 percent from the levels reached at the peak of the housing boom according to the monthly Housing Price Index released Thursday by the Federal Housing Finance Agency (FHFA).  Home values in October were down 2.8 percent compared to prices in October 2010.

Last month FHFA reported that September's prices reflected an annual increase of 0.9 percent, but today's report revised that figure downward to 0.4 percent. Seasonally adjusted prices in October were down an additional 0.2 percent from the revised September figures.

The FHFA monthly index is a weighted index measuring price changes in repeat sales of the same properties purchased with mortgages sold to or guaranteed by Fannie Mae or Freddie Mac.  As additional mortgages are acquired by the government sponsored enterprises they are used to identify repeat transactions dating back to 1975.

For the nine census divisions the seasonally adjusted monthly price changes from September to October ranged from -1.0 percent in New England to +2.0 percent in the East South Central division.

The October changes bring prices in the U.S. back to the level that existed in February 2004.