Home Prices in U.S. Declined 1.6%
Residential real-estate prices dropped in November by the most in a year, signaling housing has yet to join the U.S. rebound.
The S&P/Case-Shiller index of home values in 20 cities fell 1.6 percent from November the prior year, the biggest 12-month decrease since December 2009, the group said today in New York. The decline matched the median forecast of economists surveyed by Bloomberg News.
Mounting foreclosures will probably throw more properties on the market this year, further depressing prices, homeowners’ equity and construction. The lack of a sustained housing rebound and unemployment above 9 percent are among reasons the Federal Reserve may announce this week it’ll complete a second round of stimulus that will pump $600 billion into the economy by June.
“The housing market is in a state of hibernation,” said Zach Pandl, an economist at Nomura Securities International Inc. in New York. “We have a very severe foreclosure problem. Prices are going to keep weakening this year. Weakness in the housing market is likely to keep the Fed relatively cautious in its statement tomorrow.”
Consumer confidence rose more than forecast in January to the highest level in eight months as Americans grew more optimistic about job prospects, another report today showed.
Foreclosures fall in most U.S. cities
Foreclosures in most U.S. metro areas fell during the first half of 2011, but it doesn't mean these markets are staging a turnaround.
NEW YORK (CNNMoney) -- Foreclosures declined in more than 84% of U.S. metro areas during the first half of the year, according to the latest report from RealtyTrac, an online marketer of foreclosed properties. But that doesn't mean these markets are staging a turnaround.
"These dramatic decreases indicate the foreclosure pipeline continues to be clogged in many local markets across the country," said RealtyTrac CEO, James Saccacio, whose firm reported earlier this month that the national foreclosure rate fell 29% over the past 12 months.