Home Prices Up Slightly After Months of DeclineJune 28, 2011
After eight consecutive months of decline, the downward cycle in home prices broke in April according to the just released S&P/Case-Shiller index of property values in 20 U.S. cities.
Home prices rose 0.7% compared with March, although they fell 0.1% when adjusted for the strong spring selling season, according to the S&P/Case-Shiller survey. Home prices were down 4% from April 2010.
“This month is better than last,” said David Blitzer, S&P's spokesman “However, the seasonally adjusted numbers show that much of the improvement reflects the beginning of the spring-summer home buying season. It is much too early to tell if this is a turning point or simply due to some warmer weather.”
The fact that home prices perked up in April is still viewed with reserved enthusiasm. The big picture is that a housing market recovery has yet to gain any steam, according to Mike Larson, a housing market analyst.
"It happens every spring," said Larson "It's very clear there's a seasonal component. Even non-statisticians can see that. The report was, however, better news than what people were expecting." He added "We're not falling off a cliff anymore, but we're only going sideways."