Summary
According to a recent Case-Shiller home price report, the pace of annual decline in home values continues to decelerate and there are sustained monthly increases across many of the markets.
Historic low mortgage rates and a government tax credit program have provided a favorable backdrop for housing activity throughout this year.
Housing sector faces several obstacles that could weaken future home sales and home values.
Analysis
According to a recent report, Case-Shiller home price index has risen for four consecutive months, increasing an accumulated 4.9 percent over the four month period. Home prices were down 11.2 percent in August compared to August 2008. Although home values fell from a year ago, the rate of decrease was slower than the 13.3 percent annual decline registered in July.
Home values have improved over the past several months because home sales have trended up and home inventories have trended down during the period. Historic low mortgage rates and a government tax credit program have provided a favorable backdrop for housing activity throughout this year.
Home values have improved over the past several months because home sales have trended up and home inventories have trended down during the period. Historic low mortgage rates and a government tax credit program have provided a favorable backdrop for housing activity throughout this year.
Housing sector faces several obstacles that could weaken future home sales and home values-- new round of foreclosures, expiration of tax credit and more job losses.
David Lereah consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
