No break in the declining housing and consumer confidence trends. The consensus about a “V-shaped recovery” looks increasingly preposterous.
U.S. consumer confidence continued to weaken in April, the fourth straight month of declines… Further weighing on confidence the S&P/Case-Shiller home-price indexes…saw prices fall further in February…
The Conference Board… said that its index of consumer confidence for April fell once again, dragged down by yet another sharp decline in the present situation index. The confidence index now stands at 62.3, down from an upwardly revised 65.9 in March and compared with economists’ expectations for a reading of 61.5, The March reading was originally reported at 64.5. The confidence index was 87.3 in January and has fallen from its most recent peak of 90.6 in December.
“There is no sign of a bottom in the [Case-Shiller] numbers,” warned David M. Blitzer, chairman of S&P’s index committee, noting that all 20 metro areas the indexes study were in the red for February from a month earlier…Home prices in 10 major metropolitan areas fell a record 13.6% in February from a year earlier and 2.8% from January.
Bottom line? The worst of the credit crunch may be over, but the housing market decline is accelerating. Can’t wait to hear how the “v-shaped recovery” bulls spin this one.
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