Survey Shows US House Prices Declined 2.4%

The S&P/Case-Shiller index which charts home prices in 20 U.S. cities, shows that home prices fell by 2.4 percent in the twelve months ending in December. This is a clear indication that recovery in the housing sectors continues to lag the economy as a whole.

“The housing market continues to struggle under the weight of high unemployment, growing inventories of distressed properties and rising interest rates,” Scott Buchta, a strategist at Braver Stern Securities LLC in Chicago, said before the report. “We expect to see home prices continue to fall throughout the year as banks begin to unwind their growing inventories of foreclosed homes.”

Source: Bloomberg

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