Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller price index and consumer confidence.

  • The October 2011 Case-Shiller 20-city home price index fell by 1.2 percent from the previous month and was down 3.4 percent from one year earlier.
  • The month-to-month change in home prices ranged from 0.3 percent in Phoenix to -5.0 percent in Atlanta. On a year-to-year basis, the Washington and Detroit metro areas showed gains of 1.3 percent and 2.5 percent, respectively.
  • Overall the index for October suggests that home prices remain under pressure. Other statistics tracking the housing market show more consistent signs of stability or improvement, however. New home sales are off their recent lows, rising for the past three months and single family housing starts, although low, were up slightly during the past two months. Existing home sales rose 4 percent in November.
  • Also, the Conference Board’s consumer confidence index rose for the second consecutive month, beating the consensus forecast. The index, at 64.5 in December, was up from a recent low of just 40.9 in October. Consumers were also more confident about the future. The index tracking consumer expectations shot up to 76.4 compared to a recent low of 50 in October. Overall, it appears that consumer confidence is rebounding, yet another positive sign for the economy and the housing market as we enter 2012.
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