Home Prices in U.S. Fell at Slower Pace in Year Ended March
By Lorraine Woellert - May 29, 2012 9:14 AM
Home values in 20 U.S. cities fell in the 12 months ended March at the slowest pace in more than a year as lower borrowing costs and an improving job market gave sales a boost.
The S&P/Case-Shiller index of property values fell 2.6 percent from a year earlier after a 3.5 percent drop in February, the group reported today in New York. The decline matched the median forecast of economists surveyed by Bloomberg News. The index rose from the prior month on a seasonally adjusted basis.
A comeback in the housing market might be under way. Homebuilders are reporting their most-improved spring selling season in seven years, propelled by record-low mortgage rates, job gains and shrinking inventories. At the same time the market faces challenges as mortgage credit is difficult to obtain and slow wage growth is keeping some would-be buyers on the sidelines.
“We’ve turned the corner,” said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Florida, who correctly projected the drop. “This was always going to be a very gradual process. No one expected a real sharp housing recovery.” he said.
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