Fourth quarter shows declines in home prices

Data from S&P/Case-Shiller Home Price Indices found U.S. home prices decreased 1.1 percent and 1.2 percent for the 10- and 20-city composites in October compared to September, with 19 of the 20 major cities showing home price declines in October.

David Blitzer, the chairman of the Index Committee at S&P Indices, said the Atlanta and the Midwest regions  have shown significant weakness in the past few months. Atlanta home prices declined 5 percent between October and September 2011, and dropped 11.7 percent compared to October 2010.

Chicago, Cleveland, Detroit and Minneapolis saw monthly home prices decline by 1 percent or more in October, but Detroit was able to report a 2.5 percent home price increase in October compared to October 2010.

While home prices remain low, consumer confidence has improved in December, according to The Conference Board Consumer Confidence Index. The report found the index is at 64.5, up from 55.2 in November. The present situation index increased to 46.7 from 38.3, and the expectations index grew to 76.4 from 66.4.

"Looking ahead, consumers are more optimistic that business condition, employment prospects, and their financial situations will continue to get better," said Lynn Franco, the director of The Conference Board Consumer Research Center. "While consumers are ending the year in a somewhat upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes."

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