Home Values Still Face Downward Pressure, Consumers More Positive

Does the latest economic news lead you to be in the “cautiously optimistic” camp?  Maybe Tuesday’s data will make you a believer…The S&P Case/Shiller Price Index for March 2010 was released that showed prices falling .5% in March from the previous month based upon an index comprised of 20 U.S. cities.  Separately, the Consumer Conference Board Confidence Index for May rose to to 63.3 from 57.7 in April.

The housing price index saw its sixth month of straight declines and more pressure is expected going forward as the tax credit incentives for purchasing a new home expire.  The conference board survey increase was driven by optimism by consumers that the economy is improving and that more jobs are on the horizon.  With the volatility in the stock market the last few weeks and this data, it appears the economy will continue to walk the tightrope for another couple of months before there is any certainty to a sustained economic recovery.