Tuesday, May 25, 2010

Housing Support Abating, Prices Down 0.5%

According to the twenty-city Case-Shiller Index, existing home prices fell from February to March by 0.5% on a non-seasonally adjusted basis. This was the sixth consecutive decline in both the ten-city and twenty-city indices, but were slower paces of decline than recorded in February. Support for the housing market is abating as the extended tax credit comes to an end and waves of foreclosures depress prices. From a year prior, the ten-city index was up 3.1% and the twenty-city index was up 2.3%. This was the second time the indices were positive year-over-year since 2006. From its peak in 2006, home prices have still fallen 30.6%, according to the broader index. Home prices are expected to fall through this year, yet at a more moderate rate than experienced in previous years of this downward cycle.

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