Home prices hit a new low in March, nearly five years after they first started to fall, according to the S&P/Case-Shiller index of home prices in 20 cities.
It’s important to bear in mind that the report reflects sales that were recorded in January, February and March 2011. These sales were negotiated before that, so we’re getting a report of market conditions from late 2010 and the first two months of 2011.
Perhaps the biggest disappointment in the housing market isn’t the falling prices, but more indications that demand hasn’t picked up in the spring, when housing transactions typically rebound.
The April reading of the pending home sales index, which tracks contracts signed in April, fell by 11.6% from the March level.
Click the link, Case Shiller June1st, or click below to watch a video analyzing the latest numbers on home sales and their significance for the economy. Follow the link for a sortable Case-Shiller chart by metro area.