U.S. home prices up less than forecast in April: S&P/Case-Shiller

NEW YORK Tue Jun 24, 2014 9:17am EDT

Single family homes for sale are seen in San Marcos, California October 25, 2013. REUTERS/Mike Blake

Single family homes for sale are seen in San Marcos, California October 25, 2013.

Credit: Reuters/Mike Blake

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NEW YORK (Reuters) - U.S. single-family home prices rose less than expected in April, a closely watched survey said on Tuesday.

The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.2 percent in April on a seasonally adjusted basis. A Reuters poll of economists forecast a gain of 0.8 percent following gains of 1.2 percent in March.

Non-seasonally adjusted prices rose 1.1 percent in the 20 cities, compared to an expectation of a 0.8 percent rise.

"Near term economic factors favor further gains in housing," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices, in a statement. "However, housing is not back to normal: prices are being supported by cash sales, low inventories and declining foreclosure and REO (Real Estate Owned) sales. First time home buyers are not back in force and qualifying for a mortgage remains challenging."

Prices in the 20 cities rose 10.8 percent year over year, shy of expectations for 11.6 percent.

The seasonally adjusted 10-city gauge was unchanged in April versus a 1.2 percent gain in March, while the non-adjusted 10-city index rose 1.0 percent in April compared to a 0.8 percent gain in March.

Year over year, the 10 city gauge also rose 10.8 percent.

(Reporting by Rodrigo Campos; Editing by Meredith Mazzilli)

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Comments (1)
BeRealistic wrote:
“Near term economic factors favor further gains in housing,” – Yet another “ignore reality” moment to hype the forecast, predictions, and expectations, even if they are unrealistic.

But then he goes on to say, “However, housing is not back to normal: prices are being supported by cash sales, low inventories and declining foreclosure and REO (Real Estate Owned) sales. First time home buyers are not back in force and qualifying for a mortgage remains challenging.”

Cash sales bad = investor/speculative buying – housing bubble anyone?
Low inventories? Come on man, just yesterday the story was inventory was getting better – http://www.reuters.com/article/2014/06/23/us-usa-economy-idUSKBN0EY1PH20140623 – oh wait, the headline says getting better but the article states “In May, the month’s supply of existing homes increased to 5.6 months from 5.7 months in April” – since when was 5.7 to 5.6 a rise? Does anyone really have a clue?

Here is the breakdown, the economy across all sectors, is not making any significant progress. The “experts” and reporters writing the stories have lied and manufactured so much non-sense that tehy are now having a hard time keeping it all straight and the observant reader will note the more frequent contradictions in an attempt to protect failed policies and agendas from the current admin and DNC politicians. It is making me sick to see how the media has failed in their responsibility to inform the public and hold the government accountable and how the public, too often, is eager to ignore realtiy and drink up the kool-aid of ignorance coming from the left and their army of supporters in the media.

Jun 24, 2014 9:51am EDT  --  Report as abuse
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