Outlook for Home Prices Grows Darker

Housing analysts have grown gloomier about the outlook for U.S. home prices as sales slump, a new survey shows.

The monthly report by MacroMarkets LLC, due for release Wednesday, found that 56% of the 106 economists and other analysts surveyed expect home prices to decline this year. That is up from 40% a month ago.

In a separate report Tuesday, the National Association of Realtors measured completed resales of homes in May at a seasonally adjusted annual pace of 5.66 million units, down 2.2% from April, though up 19% from a year earlier.

Federal tax credits of as much as $8,000 for home buyers spurred sales in recent months. To qualify for those credits, buyers had to sign purchase contracts by April 30. The Realtors' data for May reflect completions of sales, most of which were based on contracts signed in March or April. (more)