Home Prices Fall to Lowest in 10 years

Home prices hit new post-bubble lows in March. Average home prices were down 2.6% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have not been this low since mid-2002.

In 13 of the 20 cities, average home prices fell in March from the year before. Atlanta fared the worst, with home prices down 17.7% year over year. Home prices in Atlanta, Cleveland, Detroit and Las Vegas are all below their January 2000 levels.

Alternatively, Phoenix posted the largest gain, with prices up 6.1% from last year. Other cities showing an uptick included Dallas, Denver and Miami. Overall, the 20-city composite is down about 35% from its peak in 2006. Read more >>

Consumer Confidence Falls to Two-Year Low

Consumer confidence unexpectedly slumped in October to the lowest level since March 2009, when the U.S. economy was in a recession, as Americans’ outlooks for employment and incomes soured.

Limited job availability, deteriorating home values and the threat of a European debt default are weighing on sentiment. A drop in optimism helps explain concern among some companies like Levi Strauss & Co. that spending will falter during the holiday shopping season.

“Dysfunctional labor and housing markets and the turmoil in Europe all are drags on confidence,” Robert Dye, chief economist at Comerica Inc. in Dallas, said before the report. “Consumers are fundamentally constrained, and consumer spending won’t be leading the economy forward.” More...