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Home prices dropped 2.6 percent in year ending in March

Published: Tuesday, May 29 2012 10:32 a.m. MDT

Amy Pace and her daughters, Taya,4 and Shaylee,2, play in a lot they recently purchased to build a home on in Layton on Wednesday, September 7, 2011.

Laura Seitz, Deseret News

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House prices in 20 U.S. metropolitan areas fell over the last year due to a sales boost brought on by lower borrowing costs and a bolstered job market, according to Bloomberg.

The S&P/Case-Shiller index shows home values have dropped 2.6 percent from a year earlier. The index fell 3.5 percent in February.

The index may be a sign that the housing market is making a comeback, according to Bloomberg.

Homebuilders are saying the spring selling season is the most-improved in seven years, which is fueled by record-low mortgage rates and shrinking inventories.

“We’ve turned the corner,” Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla., told Bloomberg. “This was always going to be a very gradual process. No one expected a real sharp housing recovery.”

Demand for homes is helping to stabilize prices.

A report from the Commerce Department shows a 3.3 percent rise in new home sales in April to a 343,000 annual rate, according to Bloomberg.

EMAIL: jferguson@desnews.com

TWITTER: @joeyferguson

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