Shiller Case Home Price Index Posted An 0.8 Percent Gain For June 2010According to the Standard & Poor’s Case-Shiller report released today, which follows 20 major cities in the United States, real estate prices rose 0.8% for April, after falling for the past six months. 18 of the 20 cities in this index showed price increases, with only prices in Miami and New York falling. Furthermore, nationally prices have risen 3.8% from their April 2009 bottom: However, prices are still down 30% from their July 2006 peak.
While this is good news, it is believed that this is more a reflection of the expiring federal tax credits for homebuyers then it is a trend for the housing market in general. In fact, according to TD Bank Financial Group “demand for homes has softened since April, and that is likely to weigh on prices, particularly in May and June”. We have also witnessed this decrease in demand in Evergreen and Conifer, although perhaps to a lesser degree than many cities.
Also today The Conference Board released the Consumer Confidence Index, which dropped to 52.9 for June from 62.7 in May. The index has been sporadically improving since it hit an all time low of 25.3 in February 2009. However, the current reading is still well below what is considered healthy (a reading above 90 indicates solid footing, and a reading above 100 signals strong growth).
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