WSJ – Home prices are improving in some parts of the country but still falling sharply in hard-hit places like Phoenix, as the weak housing market and shaky consumer confidence continue to weigh on the battered U.S. economy.
Home prices are improving in some parts of the country but still falling sharply in hard-hit places like Phoenix, as the weak housing market and shaky consumer confidence continue to weigh on the battered U.S. economy.
On a monthly basis, home-price declines in the nation’s largest cities slowed in June, according to the S&P/Case-Shiller home price indexes released Tuesday. Prices dipped 0.6% on average from the month before after falling by 1% in May. The June performance was a marked improvement from monthly drops of 2% to 2.5% that occurred earlier this year.
But prices are still much lower than they were a year ago. Home prices in 10 major metropolitan areas in June fell 17% from the year before, though the declines appear to be moderating. The broader 20-city index showed similar patterns. A separate gauge of home prices by the Office of Federal Housing Enterprise Oversight, which covers more of the country but only tracks mortgages backed by Fannie Mae and Freddie Mac, found home prices were unchanged in June from the month before.
Nine of the 20 metropolitan areas tracked by the S&P/Case-Shiller index posted monthly price gains in June. They included Denver, where prices grew 1.5%, and Boston, where prices rose 1.2%. Phoenix, meanwhile, was the worst performer last month; prices fell 2.6%. Prices also fell sharply in Miami, Las Vegas and Los Angeles.