U.S. Home Prices `Bouncing Around’ Bottom | Irvine Real Estate | Irvine Homes and Condos for Sale

by Robert Mack on January 25, 2011

in Buyers, Latest News, Sellers

U.S. home prices have reached a bottom and may be set to rise in the first half as buyers take advantage of increased affordability, said Karl Case, the economist who co-founded the S&P/Case-Shiller home price index.

“Prices have gone flat, bouncing around at what I think is essentially a bottom,” Case, a retired professor of economics at Wellesley College, said in a radio interview today on “Bloomberg Surveillance.” “We’re really going to have to wait to see what the spring market brings.”

The S&P/Case-Shiller index of home values in 20 cities fell 1.6 percent in November from a year earlier, the biggest 12- month decrease since December 2009, the group said today in New York. The Federal Housing Finance Agency, which measures sales financed with mortgages backed by Fannie Mae and Freddie Mac, said separately that prices slid 4.3 percent from November 2009.

An abundance of inexpensive homes and an expanding economy will support housing demand as it enters the so-called spring selling season when the bulk of transactions typically occur, said Case, who created the price index with Yale University Economics Professor Robert Shiller. The National Association of Realtors’ affordability index, a gauge of median income against home prices, reached an all-time high of 184.5 in November.

As the buyers take advantage of increased affordability, many economists are foreseeing a spring back in the market….What do you think?

Posted on Irvine Orange County Real Estate Market News

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