Case Shiller Home Price Index Increases in April

| June 29, 2010

The Case Shiller Home Price Index for April rose 0.4%, exceeding consensus expectations for a 0.1% decline. The following graph from Calculated Risk displays the 10-city and 20-city seasonal composite indices.

Of course, the increase was fueled by the home buyer tax credit that expired at the end of the month, and now that the residential real estate sector is once again free of government stimulus, the secular decline following the implosion of the massive speculative bubble will likely continue. Further, the expired tax credit effectively pulled demand forward, so the next few months will be susceptible to a sharp drop from the artificially high levels of March and April.

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Category: Commentary, Market Update

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