Prices Rise as Consumer Confidence Declines
July 8, 2010
Source: Bloomberg Businessweek, Shobhana Chandra
The U.S. government's $8,000 tax credit for home buyers helped boost home prices. Analysts surveyed by Bloomberg estimated gains in home prices 1.3 percent to 4.1 percent, after 2.3 percent annual growth in March.
The home-price gauge fell 0.1 percent in April compared to the previous month. Although the worst is over, economists warn that real estate prices could face another setback due to the end of the tax credit, rising foreclosures, and high unemployment.