An index that showed home prices in U.S. cities — including the District— were down for the 17th consecutive month was one of a number of economic indicators released Tuesday that reflected low consumer confidence and a continued slump in the housing market.
The S&P/Case-Shiller Home Price Index, which tracks annual returns on housing investment in large U.S. cities, showed returns were down nearly 3 percent this year, its largest decline since 1991. In Washington, the index showed returns on home investments are down nearly 6 percent from last year.
“A review of the decline in home price returns on a regional level shows no region is immune to the weakening price returns,” MacroMarkets chief economist Robert Shiller said.
Joseph Cater III, president and chief economist at Annapolis-based Market-Economics, said the subprime meltdown was behind the weak housing market.
“The middle and low-income people are being squeezed by inflationary pressures,” he said. “They’re having less money to make home payments.”
The weak housing market helped push consumer confidence to its lowest point in a year, according to the Conference Board’s Consumer Confidence Index.
The U.S. Commerce Department also reported new home sales dropped for the fourth time in five months. The newssent the Dow Jones Industrial Average slightly lower Tuesday, closing down 14 points.
