Poor housing data indicates no recovery for rest of the year

In the June 2011 RPX Monthly Housing Market Report from Radar Logic Incorporated, housing values in the 25 major U.S. metropolitan markets declined 4.7 percent year-to-year in June after the first quarter brought the smallest recorded seasonal increase in the composite price.

RPX transaction count declined 6.6 percent over the past year and is expected to continue to drop through the end of 2011. The report predicted sales of distressed properties will increase in the next six months, as foreclosed property sales typically reach their low points in the summer and their high points towards the end of the year.

President and CEO of Radar Logic Michael Feder said the data suggests a negative forecast for the remainder of the year.

"Inventory is up, turnover is down, and delinquencies are increasing," Feder said. "The worrisome question is what will happen to our economy if homeowners lose another $1.5 trillion of home equity value on top of the $6 trillion they've lost over the last five years."

Thomson Reuters Survey of Consumers looked at consumer behavior in its latest report. According to the data, consumer confidence dropped significantly in August to 55.7, down from 63.7 in July. In addition, the index of consumer expectations for the rest of the year dropped from 56 to 47.4, while the current conditions index dropped as well from 75.8 to 68.7.

"The recent surge of pessimism was due to lost confidence in the ability of the government to enact policies that would counteract the growing threat of a renewed recession," said Richard Curtin, CEO of Surveys of Consumers.  

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