Thursday, August 2, 2012

Housing Stats Show Middling Performance

U.S. real estate analysts have been busy making positive prognostications for the struggling housing market these past few months, but a look at the 20 cities Case-Schiller tracks for its Home Price Index reveals a more modest truth. More reserved pundits who have eyed the most recent graph note that the uptick in prices could be explained away by seasonal trends that are likely push values higher. Harsher critics say slower foreclosure processes and low mortgage rates that may vanish overnight threaten to erase what little gain is causing the celebration. For more on this continue reading the following article from Iacono Research

The U.S. housing market has had a good few months or so with more and more pundits noting that this sector will finally, again make a positive contribution to economic growth rather than being a drag, however, when looking at the Case-Shiller Home Price Indexes for the 20 cities it tracks, the recent gains don’t appear all that impressive – so far, just another small move higher that occurs regularly at this time of the year.

Diana Olick throws a little cold water on the housing party in this story at CNBC, citing a temporary slowdown in foreclosures that has limited inventory and freakishly low mortgage rates that may not last forever.

I guess we’ll find out in a few months whether the housing recovery is real…

This blog post was republished with permission from Tim Iacono.

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