Home Price Index Falls Again

House prices fell 1% in the first quarter, compared to the previous quarter, and 3.2% from the first quarter of 2009, according to the Standard & Poor's/Case-Shiller 20-city house price index. The HPI released Tuesday also shows that prices on a nonadjusted basis have fallen for the past six months, including 0.5% in March and 0.6% in February. "The housing market may be in better shape than this time last year, but when you look at recent trends there are signs of some renewed weakening in home prices," says David Blitzer, chairman of the S&P index committee. IHS Global Insight economist Patrick Newport said that housing demand is improving due to a better job market and low rates. However, an increase in foreclosures is putting downward pressure on prices. "In our view, the housing glut and foreclosures will drive the national Case-Shiller down another 6%-8% with prices bottoming in 2011," Newport said.