A report on home prices in the United States released today showed stabilization in prices in the housing markets which is a good sign that home values are no longer falling at a quick rate.
The index used to calculate house prices is called the S&P/Case-Shiller index of property values, and is calculated using a pool of twenty U.S. cities. Data show the index dropped 4.5 percent from June 2010, after a 4.6 percent decline in the 12 months ended May which was the biggest since 2009. The forecast was for a 4.6 decline again.
On a monthly basis, prices in the twenty cities climbed before adjusting for seasonal changes, rising 1.1 percent in June from the prior month after climbing 1 percent in May.
However, the year-over-year gauge provides better indications of trends in prices, according to the S&P/Case-Shiller group.
Karl Case and Robert Shiller are the economists who created this house price index.
Data show that deterioration in housing prices is slowing at least, though there will not be any real gains in the near future as it will take some years for a full recovery in the housing market.