Home Prices Take Record Dive

Key index drops 12.7%; consumer confidence plummets
By Kevin Spak,  Newser Staff
Posted Apr 29, 2008 11:24 AM CDT
A realty sign indicating a reduced price stands out a home for sale in south Denver on Sunday, March 23, 2008.   (AP Photo/David Zalubowski, file)
camera-icon View 3 more images

(Newser) – A key measure of home prices fell fell 12.7% in February, the biggest decline in its 7 years of existence, and consumer confidence measured this month hit a 5-year low, Bloomberg reports. The S&P/Case-Shiller home price index reflects the crush of foreclosures and resultant tightening of lending standards. “There is no sign of a bottom in the numbers,” said an S&P spokesman.

The Conference Board’s consumer confidence index fell to 62.3 in April, from an upwardly revised 65.9 in March. The index was up at 90.6 as recently as December. Consumers are especially pessimistic about the present situation, the Wall Street Journal reports. Last week the Conference Board released its own grim housing report, showing that supply hasn’t been this high in nearly 30 years.