Housing real estate prices possibly fell in the year ended in June by the largest amount in 19 months, indicating the housing market persists to hamper the United States recovery, economists stated before a report.
The S & P / Case-Shiller home prices in 20 cities drop 4.6 percent from June 2010, the biggest drop in 12 months since November 2009, according to the median forecast of 31 economists surveyed. Another report may show consumer confidence fell in August to its lowest level in 10 months.
Any recovery value of housing is probably years gone, as foreclosures put more properties on the market, while the unemployment rate hovers around 9% and strict lending regulations hurt sales. Waning home equity joint with the drop in stock prices in the month is harmful household wealth; increasing the risk that spending will falter.
"Too many factors are still dragging down house prices," said Patrick Newport, economist at IHS Global Insight in Lexington, Massachusetts. "We still have a lot of foreclosures in the pipeline; a large amount of excess supply and demand for housing continues to weaken."
The S & P / Case-Shiller, based on an average of three months should be at 9 am New York. Survey estimates ranged from declines of 4 percent to 5.5 percent after falling 4.5 percent in the year ended May. The group also will release countrywide figures on real estate worth for the second quarter.
