U.S. home prices declined more than 3% below their respective readings a year ago, according to the S&P/Case Shiller home-price index released Tuesday. House prices fell 3.96% vs 3.95% consensus year-over-year, but registered the first monthly uptick in eight months.
Here’s the commentary:
“Data through April 2011, released today by S&P Indices for its S&P/Case- Shiller1 Home Price Indices, the leading measure of U.S. home prices, show a monthly increase in prices for the 10- and 20-City Composites for the first time in eight months. The 10- and 20-City Composites were up 0.8% and 0.7%, respectively, in April versus March. Both indices are lower than a year ago; the 10-City Composite fell 3.1% and the 20-City Composite is down 4.0% from April 2010 levels. Six of the 20 MSAs showed new index lows in April – Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa. Thirteen of the cities and both composites posted positive monthly changes. With index levels of 152.51 and 138.84, respectively, both the 10- and 20-City Composites are above their March 2011 levels, which had been a new crisis low for the 20-City Composite.”
From March to April, home prices fell 0.1 percent on a seasonally adjusted basis, the smallest contraction since July 2010.
Falling or flat prices is the latest sign that the weak housing sector continues to remain a soft spot in the U.S. economy.
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