L.A. home prices edge lower

But it could have been worse. Prices fell 0.7 percent from September to October, according to the widely followed Case-Shiller Index, which is a smaller drop than most major markets (Atlanta fell 2.9 percent, Chicago 2 percent). Also L.A. prices were up 3.3 percent from a year earlier (one of just four markets showing year-to-year increases). Still, the overall report is grim. From the press release:

"The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October's report. Home prices across the country continue to fall." says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "The trends we have seen over the past few months have not changed. The tax incentives are over and the national economy remained lackluster in October, the month covered by these data. Existing homes sales and housing starts have been reported for both October and November, and neither is giving any sense of optimism.

Amid all the encouraging forecasts for 2011, housing remains a major thorn - and without housing, the recovery can only go so far.