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Tuesday, July 31, 2007

U.S. S&P/Case-Shiller Home Price Index Declined 2.8% in May


" Home values in 20 U.S. cities fell the most in at least six years as a glut of unsold properties, mounting defaults and higher mortgage rates suggest the housing recession has yet to touch bottom.

The S&P/Case-Shiller index of home prices in 20 metropolitan areas declined 2.8 percent in May from the same month a year earlier, led by Detroit and San Diego, according to the report issued today by Standard & Poor's and MacroMarkets LLC. It was the fifth straight year-on-year drop and the biggest decline since the index started in 2001. The drop was less than economists had forecast.

The declines suggest that housing will continue to hamstring the world's largest economy, economists say. Sluggish sales and falling prices prompt builders to scale back construction and hinder consumer spending as homeowners are less able to borrow against home equity. "

Source: U.S. S&P/Case-Shiller Home Price Index Declined 2.8% in May (http://www.bloomberg.com/apps/news?pid=20601087&sid=aRT2l0Qx0IPc&refer=home)