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Spring was kind to home prices, but future isn’t bright

USA TODAY, by Julie Schmit

U.S. home prices rose 3.6% in the second quarter from the first, boosted by the spring buying season. But prices are expected to retreat this fall because of the struggling economy.

Even though prices rose quarter to quarter, they remain 5.9% below where they were last year, putting second-quarter U.S. home prices at 2003 levels, according to the Standard & Poor’s/Case-Shiller home price index released Tuesday.

The spring increase was widely expected, given long-standing buying patterns. When adjusted for seasonal factors, U.S. home prices in the second quarter were basically flat with the quarter before, the data show.


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