Home Prices Fall 0.6 percent as Rate of Decline Slows

2009 June 30

June 30 2009 - U.S. home prices eased their slide in April, but rising unemployment and shaky consumer confidence are weighing on prospects for a recovery in the housing market and broader economy.

Home prices in 20 major cities fell an average 0.6% in April, an improvement from the 2.2% decline the prior month, according to the Standard & Poor’s/Case-Shiller index released Tuesday. Thirteen metropolitan areas had price gains in April, led by Dallas, Denver and Cleveland, where prices rose 1% or more from the previous month.

David Blitzer, chairman of S&P’s index committee, said in a statement that while “some stabilization may be appearing in some markets,” the spring buying season usually helps buoy housing-market activity. “It will take some time to determine if a recovery is really here,” he said.

Despite the improvement, home prices are down 18% on average from a year ago, and nearly 33% from their peak in 2006. Sun Belt cities have been hit hardest by the downturn; in Phoenix and Las Vegas, prices have dropped more than 50% from their peak. By comparison, Dallas prices have dropped 9.6%. Patrick Newport, an economist with IHS Global Insight in Lexington, Mass., said that while prices are “no longer in a free-fall,” they are likely to keep dropping as foreclosed properties grow in number. Foreclosures and delinquency rates have worsened in recent months as rising unemployment makes it more difficult for homeowners to keep up with their mortgage payments.

Home Prices Fall 0.6% as Rate of Decline Slows

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