Home Prices Stabilizing, Finally!
New reports from several real estate research firms signify that home prices are finally stabilizing. The data reinforces a notion already asserted by many an economist, real estate agent and Wall Street investor: that 2012 is the year of the bottom. The National Association of Realtors reports that in the first quarter of 2012, the median existing single-family home price, or final sales price, rose in 74 of the 146 metro areas (51%) that the association tracks. Housing inventory levels have been shrinking across the U.S., leading to bidding wars and modest upward pressure on prices in some areas. David Stiff, chief economist at Fiserv, notes that non-price metrics like home sales volume, increased spending on home improvement and more multi-family construction indicate that the housing sector has bottomed.
“This spring the housing market is responding to an improving balance between real estate supply and demand which is causing stabilization in house prices,” notes Mark Fleming, chief economist for CoreLogic, in the report. “Although this has been the case in each of the last two years, the difference this year is that stabilization is occurring without the support of tax credits and in spite of a declining share of REO sales.”
– “Home Prices Are Stabilizing, Signifying A Housing Market Bottom,” by Morgan Brennan, Forbes,
