Salient to Investors:
16 of the 20 cities in the Case-Shiller index showed a year-over-year advance.
Karl Case at Wellesley College says US home prices have bottomed but are unlikely to come roaring back, hindered by tight lending standards, slow economic growth and a limited supply of properties on the market. Case cites problems in the economy, problems abroad, and worrying demographics.
Robert Shiller at Yale said it would take at least a year of price increases to determine there is a recovery in housing.
Patrick Newport at IHS Global Insight said record-low mortgage rates, a smaller share of sales of foreclosed properties, and low inventory are boosting prices, but further gains may be held back by an overhang of distressed properties from homeowners in default or foreclosure. Newport expects prices to continue rising by not much more than inflation over the next five years.
Read the full article at http://www.bloomberg.com/news/2012-09-25/home-prices-unlikely-to-come-roaring-back-case-says.html