Housing Prices Show Some Life

 

Federal Housing Finance Agency?EUR??,,????'?????<-Photo Courtesy of FHFA

It would appear that the activity generated by first-time home buyer tax credit helped boost demand, and that led to some price stability.

The battle between house prices and inventory overhang comes down to the amount of demand generated by the extension and expansion of the tax credit against rising foreclosures as a poor economy and weak labor market continue to reduce housing demand and increase mortgage failures.

The balance between the demand and supply forces is precarious. NAHB?EUR??,,????'?????< The S&P/Case-Shiller national house price index rose in the third quarter, the second increase in a row. The index rose by 1.8 percent and 1.9 percent in the second and third quarters, respectively, on a seasonally adjusted basis.

Nonetheless, the national index was down 8.9 percent from third quarter 2008, leaving national prices at around their fall 2003 level. Once the demand for home buying goes up, the demand for landscapes will follow suit. S&P/Case-Shiller 10-city and 20-city indexes have both shown four consecutive months of increases. ?EUR??,,????'?????<