S&P/Case-Shiller: Good news/bad news in June

The S&P/Case-Shiller home price index figures were just released. The good news? Home prices in 20 major metropolitan areas rose 4.2% year-over-year in June, compared with forecasts for a gain of 3.5%. On a monthly basis, the index was up 0.28% from May as well.

The moderately bad news? That 0.28% gain was the smallest since the monthly numbers went positive in April. The really bad news? These figures clearly reflect the lagged impact of the burst in spring sales brought about by the tax credit. Since the credit expired and the economy started rolling over again, home sales have taken an Acapulco-style cliff dive. Anyone who thinks that won't impact the pricing figures down the road needs to spend some time reading his Economics 101 textbook.