So far the indications are showing the housing market has bottomed out. The National Association of Realtors reports median house prices rose in 74 of the 146 metro areas the association tracks. “Given the steadily dwindling supply of inventory and notably higher listing prices that are being negotiated today, prices are expected to show further improvements in the near future” Lawrence Yun, Chief economist of NAR, said in a statement.
The Fiserv Case-Shiller Indexes report signs of price stabilization also. Chief economist, David Stiff at Fiserv, notes that non-profit metrics like home sales volume, increased spending on home improvement and more multi-family construction indicate that the housing sector has bottomed. “We expect that home prices, which generally lag changes in sales activity by nine to twelve months, will stabilize by the end of this summer and then rise at an annualized rate of 3.9% over the next five years”.
The fact that this stabilization has happened without the support of tax credits and in spite of declining share of REO sales, is reassuring.
For the full report – news release