S&P Case-Shiller predictions
Preceding the upcoming release of Standard & Poor Case-Shiller Home Price Indices for June, Zillow has forecast that the 20-city composite home price index will drop 4.3 percent from June 2010 but increase 1.2 percent from May. Zillow economists project that the 10-city composite will dip 3.5 percent from June 2010 and also rise 1.2 percent from May.
Zillow’s chief economist, Dr. Stan Humphries said, “Monthly home value appreciation in June may mark the last hurrah before beginning to weaken in the back half of this year in the face of worrying macroeconomic signals that began to accumulate starting in July and ultimately suppressed July home sales. Not surprisingly, the August turmoil of credit rating downgrades, negative GDP revisions, stock oscillations and European debt woes are likely to leave a mark on both August home sales and home value appreciation.”
Forecasts for the 10- and 20-city composites are based on the June Zillow Home Value Index in conjunction with May Case-Shiller home indices and the national percentage of foreclosure re-sales in June.