The bastards* at Standard & Poor’s that produce the Case-Shiller U.S. Home Price Index gleefully* announced yesterday that home prices have continued to drop. How much? The national average dropped 18% from the end of 2007 to the end of 2008.

That’s the largest drop in the index’s 21 year history. Nationally, we are now at 2003 price levels.

The markets that were hardest hit are as follows:

Phoenix————–34.0%
Las Vegas———— 33.0%
San Francisco——— 31.2%
Miami————— 28.8%
Los Angeles———-  26.4%
San Diego———— 24.8%
Tampa————–  22.0%
Detroit————– 21.7%
D.C.—————- 19.2%
Minneapolis———- 18.4%

WHAT DOES THIS MEAN FOR YOU?

For the record, by “you” I don’t mean all the sharks out there looking to buy distressed homes. There are already too many guys in Armani suits and perforated Italian shoes on the airwaves and the Net telling people they can get rich by taking advantage of distressed homeowners or buying foreclosed homes.

By “you” I’m referring to homeowners who are trying to pay off their mortgages and keep their homes.

The national average doesn’t mean much to you, since the only thing that matters is how much your home has dropped in value. And that number varies widely. For example, some markets like Dallas and Denver saw modest drops of 4%.

Moreover, within a city price drops vary by neighborhood. For example, in Los Angeles homes in less expensive neighborhoods have dropped by 50% from their peak, homes in middle class neighborhoods have dropped by 38%, and homes in expensive neighborhoods dropped 28%.

So, the best way to find out what your home is worth today isn’t to read about national trends in the newspaper. Instead, ask two of your local real estate agents to personally tour your home and give you an estimate. Alternatively, you can hire a professional appraiser. Either way, you will get more accurate information and can make informed decisions about what to do with your home.

*Okay, the Case-Shiller folks probably aren’t bastards, and there’s nothing to indicate they gleefully announced the drop in home values. Nevertheless, I’m noticing that some economists and statisticians, along with some renters, seem to be enjoying this housing meltdown a little bit too much.