Home Prices in 20 U.S. Cities Probably Fell at a Slower Rate in September

Home prices in 20 U.S. cities probably fell at a slower pace and consumer confidence rose from a two-year low, showing the economy is stabilizing, economists said before reports today.

The S&P/Case-Shiller index of property values in 20 cities dropped 3 percent in September from the same month in 2010 after decreasing 3.8 percent in the year ended August, according to the median forecast of 32 economists surveyed by Bloomberg News. The Conference Board’s confidence gauge climbed to 44 this month from 39.8 in October, separate figures may show.

Unemployment at 9 percent, tight lending standards and a looming supply of distressed properties that may drag down home prices further will probably keep hurting demand into next year. A pickup in employment is needed to boost consumers’ outlooks and lift purchases of big-ticket items.