In the U.S., single-family home prices showed a slight dip in June, as compared to May. The U.S. housing market continues to slowly crawl along at depressed levels.
Data released on Tuesday by the S&P/Case-Schiller composite index of 20 metropolitan areas showed a slip of 0.1% on a seasonally adjusted basis. On a non seasonally adjusted basis the figure stood at 1.1%. A recent poll of top economists by the news agency Reuters, forecasted prices to remain unchanged.
Prices in the twenty cities fell 4,5% from a year ago with a better expectations forecast of 0.1%. The number of excess houses, and the continued bout of ongoing foreclosures coupled with weak demand and much tighter credit requirements, continue to plaque the housing industry. Given the continued problems facing the housing industry, economists are growing concerned that the U.S. economy may be slipping into another recession.
“This month’s report showed mixed signals for recovery in home prices. No cities made new lows in June 2011, and the majority of cities are seeing improved annual rates,” David Blitzer, chairman of the index committee at Standard & Poor’s, said in a statement.
While all California cities bottomed out in 2009 along with Dallas, Denver, and Washington D.C., others including Las Vegas, Miami, Phoenix, Tampa, and Detroit have set new lows in 2011.
“These shifts suggest that we are back to regional housing markets, rather than a national housing market where everything rose and fell together,” said David Blitzer, chairman of the index committee at S&P Indices.
There was a large increase in consumer spending in July, which means Americans are willing to make big purchases. But, this summer finds home buyers having a difficult time in obtaining mortgages and it will likely lead to negative effect on the housing industry.