Home Price Index Falls, Record Decline

123jump.com Staff
24 Jun, 2008
New York City

Metropolitan home price index fell as 13 of the 20 cities show record annual lows on prices. The S&P/Case-Shiller index fell in May 15.3% from a year ago as prices fell in all of the 20 cities that the index tracks. The home prices in Las Vegas and Miami fell 27%. The prices are likely to decline further as inventory of unsold homes continue to build.

[R]10:10AM New York – U.S. stocks declined after metropolitan home price index fell.[/R]

U.S. stocks fell in the morning trading after crude oil flirted with another intra-day record, an index of home prices in metropolitan areas fell and UPS lowered its earnings forecast.

The S&P/Case-Shiller home price index dropped 15.3% in May after declining 14.3% in April from a year ago. Prices in every twenty markets fell, led by 27% decline in Las Vegas and Miami. Prices in Vegas and Miami rose as high as 53% and 32% respectively in the 2004 and 2005 years and are now correcting rapidly.

Prices across the nation are likely to fall further as inventory of unsold homes pile up.

Chicago, Dallas and Cleveland prices rebounded from April but declined from a year ago. Eight cities showed a mild rebound in prices from April.

The index has declined every month since January 2007. Of the twenty cities, thirteen cities now show record low annual declines.

Earnings review

The Kroger Co, the largest U.S. grocery chain reported first quarter sales increased 11.5% to $23.1 billion from $20.7 billion a year ago. Net income in the quarter increased 13% to $386.0 million or 58 cents per diluted share compared to net income of $336.6 million or 47 cents per share, a year ago.

The Kroger Co ((KR)) in the last one year traded as high as $30.21 in October 2007 and as low as $23.39 in April 2008. Based on the yesterday’s closing price the company has a market cap of $17.17 billion.

Symmetry Medical Inc, a leading independent provider of products to the global orthopaedic device industry and other medical markets reported first quarter revenues increased 57.4% to $101.9 million from $64.7 million a year ago. Net income in the quarter increased 60% to $4.0 million or 11 cents per diluted share compared to net income of $1.6 million or 5 cents per share, a year ago.

Symmetry Medical Inc ((SMA)) in the last one year traded as high as $19.22 in March 2008 and as low as $12.40 in April 2008. Based on the yesterday’s closing price the company has a market cap of $527.75 million.

Ennis, Inc, a maker of printed business products and apparel said first quarter sales rose 6.8% to $163.2 million from $152.8 million a year ago. Net income in the quarter increased 1% $10.9 million or 42 cents per diluted share compared to net income of $10.8 million or 42 cents per share, a year ago.

Ennis, Inc ((EBF)) in the last one year traded as high as $25.28 in June 2007 and as low as $14.21 in March 2008. Based on the yesterday’s closing price the company has a market cap of $436.47 million.

In Tokyo Nikkei 225 Index closed lower 7.91 or 0.06% to 13,849.56, in Hong Kong Hang Seng index decreased 258.94 or 1.14% closed to 22,456.02. In Australia ASX 200 index higher 6.30 or 0.12% to close 5,290.00. In Malaysia KL Composite index increased 4.87 or 0.41% closed to 1,200.28.

In South Korea Kospi Index decreased 4.75 or 0.28% to close at 1,710.84, in Thailand SET index closed lower 5.15 or 0.67% to 763.75 and Indonesia JSE Index edged increased 2.63 or 0.11% to 2,365.38. Sensex index in India decreased 186.74 or 1.31% to 14,106.58.