Two new reports show home values falling again. They could dip below last year's lows, some economists say.
Housing prices are heading down toward the lows reached in the depths of the recession a year ago, according to home price reports released Tuesday.
In March, home prices fell 0.5 percent from the previous month, according to the S&P/Case-Shiller home price index measuring price moves in 20 US cities. Not seasonally adjusted, the 20-city composite index has now fallen six months in a row.
Even adjusting for seasonal variance, home prices fell1.9 percent from the fourth quarter to the first quarter, according to a release from the Federal Housing Finance Agency.
These declines have come even before the April 30 expiration of the home buyer tax credit, which was expected to boost sales. Many economists now expect this second dip in housing prices to test the lows of last year.
"We're still going to see prices drop," says Patrick Newport, an economist with IHS Global Insight in Lexington, Mass. He forecasts a 6 percent to 8 percent fall in a separate quarterly Case/Shiller index, which would take the national housing price well below last year's multiyear low. He expects prices to start moving up next year.