Jun 24, 2008 1:06 pm US/Eastern
U.S. Home Prices, Consumer Confidence Plummet
Home Prices Drop At Fastest Rate Ever In April; Consumer Confidence Plunges To Fifth-Lowest Level
NEW YORK (AP) ―
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A closely watched index shows U.S. housing prices dropped in April at the fastest rate ever, with prices tumbling to levels not seen in nearly four years. (File)
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U.S. home prices tumbled in April at the fastest rate since a widely-followed index was begun in 2000 with all 20 metropolitan areas posting annual declines for the first time.
The Standard & Poor's/Case-Shiller home price index of 20 cities fell by 15.3 percent in April versus last year, according to Tuesday's report. Prices nationwide are at levels not seen since August 2004.
The narrower 10-city index declined 16.3 percent in April, its biggest decline in its more than two-decade history.
No city stayed above water. The last holdout, Charlotte, N.C., finally succumbed to the national housing downturn, with prices there slipping 0.1 percent year-over-year.
Las Vegas and Miami both continue to post the largest declines, falling 26.8 percent and 26.7 percent, respectively.
However, the annual declines in Denver, Dallas and Cleveland were less severe than a month before, but Maureen Maitland, a S&P vice president, is reluctant to peg that as an indication of stabilization.
"We wouldn't call a trend on one-month data," she said.
The report also showed prices in eight metros increased in April over March, but the gains could be seasonal blips as the home-buying spring season starts up rather than a sign of a turnaround, Maitland said.
Meanwhile, an industry group says U.S. consumer confidence fell unexpectedly sharply in June, sinking to the fifth-lowest level ever.
The report Tuesday also said the group's reading of consumers' expectations hit an all-time low.
The Conference Board's consumer confidence index fell to 50.4 this month, down from 58.1 in May. The reading is far lower than economists expected; the consensus estimate of economists surveyed by Thomson/IFR was 56.5.
The Conference Board's Lynn Franco says the reading suggests "the economy remains stuck in low gear."
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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