The January S&P/Case Shiller Home Price Index is due out at 9am this morning. I’ll be on the road this morning, so check the comments for more details.
Home prices in 20 U.S. cities probably fell at the fastest year-over-year pace on record in January as demand plummeted and foreclosures rose, economists said ahead of a private report today.
The S&P/Case-Shiller index dropped 18.6 percent, according to the median forecast of 29 economists surveyed by Bloomberg News. A separate report will likely indicate consumers this month were still pessimistic about the economic outlook.
A glut of unsold properties may keep prices low even as policy efforts to unclog credit and aid borrowers begin to take hold and ease the housing slump, now in its fourth year. Shrinking wealth and a persistent lack of confidence in the economy may also temper a turnaround in consumer spending.
“It’ll be some time before we reach the nadir in home prices,” said Joseph Brusuelas, a director at Moody’s Economy.com in West Chester, Pennsylvania. “We’re starting to see some signs of stability in housing sales, but there’s a significant oversupply.”
S&P/Case-Shiller will report the 20-city home-price index at 9 a.m. Washington time. Estimates in the Bloomberg survey ranged from declines of 17.2 percent to 19 percent, after a drop of 18.5 percent in December. The gauge has fallen every month since January 2007. Year-over-year records started in 2001.
On Tuesday, investors will be bracing for the latest report on the January S&P/Case-Shiller Home Price Index. Analysts expect the decline in prices to slow somewhat, falling 18.3% in the latest report after dropping 18.5% in December.