April S&P/Case Shiller numbers improve from March; pace of decline slows

April numbers from the S&P/Case Shiller home price index are in, dropping 0.6% from April to March, moderating previous months' declines:

Prices of U.S. single-family homes fell in April from March but the pace of the decline moderated, suggesting stability is emerging in some regions, according to Standard & Poor's/Case Shiller home price indexes released on Tuesday.

An index of 20 metropolitan areas dipped 0.6 percent in April from March, after a 2.2 percent decline the month before, for an 18.1 percent downturn from a year earlier.

The month's slide was smaller than the 1.8 percent drop forecast in a Reuters poll.

S&P's index of 10 metropolitan areas declined 0.7 percent in April for an 18 percent year-over-year drop, after falling 2.1 percent month on month in March.

The good news is that the San Francisco MSA increased 0.6% from March to April, up from a 2.2% decrease from February to March. The MSA is down 28% YOY.

Of course, these numbers are from April. May data will most likely continue the trend (since that represents closings on contracts initiated 30-60 days earlier), but with the rate increases experienced during May, we could very well see a decrease again once June numbers come in (around August). Will it have a negative effect on the psychology of the market? Anything is possible at this point. If nothing else, it will give print journalists a reason to doubt a bottom (and hence, the cycle of real estate continues).

SOURCE: CNBC and STANDARD AND POORS