Case-Shiller: Home Prices Fall in June

By Sam Forgione

NEW YORK -- U.S. single-family home prices fell in June and disappointed expectations, a closely watched survey said Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.2 percent in June on a seasonally adjusted basis. A Reuters poll of economists had forecast a flat reading.

Non-seasonally adjusted prices rose 1 percent in the 20 cities, in line with expectations.

%VIRTUAL-WSSCourseInline-750%"Home price gains continue to ease as they have since last fall," David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement.

"For the first time since February 2008, all cities showed lower annual rates than the previous month. Other housing indicators -- starts, existing home sales and builders' sentiment -- are positive. Taken together, these point to a more normal housing sector."

Prices in the 20 cities rose 8.1 percent year over year, shy of expectations for 8.4 percent.

A broader measure of national housing market activity that Case-Shiller is now releasing on a monthly basis rose at a slower pace year over year, coming in at 6.2 percent. Previously, Case-Shiller had released its national index on a quarterly basis.

The seasonally adjusted 10-city gauge fell 0.1 percent in June versus a 0.2 percent decline in May, while the non-adjusted 10-city index rose 1 percent in June compared to a 1.1 percent rise in May.

Year over year, the 10-city gauge also rose 8.1 percent.