'Signs of some renewed weakening' in latest Case-Shiller data
By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) -- Home prices fell 0.5% in March compared with February in 20 major U.S. cities, according to the Case-Shiller home price index released Tuesday by Standard & Poor's.
However, prices have moved up 2.3% in the past year, marking the second consecutive gain.
Prices fell in 13 of the 20 metropolitan areas tracked by Case-Shiller in March compared with February. The data are not seasonally adjusted.
"The housing market may be in better shape than this time last year; but, when you look at recent trends there are signs of some renewed weakening in home prices," said David Blitzer, chairman of the index committee at Standard & Poor's.
"It is especially disappointing that the improvement we saw in sales and starts in March did not find its way to home prices," he said in a statement.
There's been recent renewed weakness in housing prices as tax incentives end and foreclosures rise, S&P noted. Nationally, home prices are back at spring 2003 levels, according to S&P.
"Now that the tax incentive ended on April 30th, we don't expect to see a boost in relative demand," Blitzer said.
The biggest month-to-month decline came in Detroit, where March prices dropped 4.1%. The biggest monthly rise was in Cleveland, where prices gained 1.8%.
In the past year, prices were higher in 10 of 20 cities, led by a 16.2% rise in San Francisco. The largest annual decline was 12% in Las Vegas.
The Case-Shiller index is based on repeat sales of the same properties. Real full S&P release.
On Monday, the National Association of Realtors reported that U.S. home resales rose 7.6% during April to a seasonally adjusted annual rate of 5.77 million as buyers rushed to complete sales before the April 30 expiration of the tax credit.
