Prices were down 15.8 percent from May 2007, including a 0.9 percent one-month drop in May alone. The 10-city price index, which dates to 1988, dropped 16.9 percent, its sharpest decline on record.


The report “does seem to suggest the rate of decline of existing home prices is slowing,” Ian Shepherdson of High Frequency Economics wrote in a note. “To be sure, prices are still falling very rapidly, and there is no prospect of any rebound this year and probably next, but a slower rate of fall is welcome nonetheless.”


“It is not a particularly good sign that consumer confidence and sentiment levels remain as low as they are, even after almost $100 billion of tax rebates have hit consumer’s wallets in the past several months,” Joshua Shapiro, the chief domestic economic at MFR, said in a note.

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