Home Prices Rise 4.6%, Biggest Jump Since 2006

A leading index of property values jumped 4.6 percent in May as compared to May 2009, the largest year-over-year increase since August 2006. However, most analysts agree that the jump shown by the S&P/Case-Shiller index was largely attributable to the $8,000 federal homebuyer tax credit, which required a signed contract by April 30. Additionally, home prices exceeded forecasts for May in 20 U.S. cities. Unfortunately, the Conference Board also reported today that its consumer confidence index plunged to 50.4 in July, down from 54.3 in June.