Which way for home prices? Are they headed back up? This morning's FHFA news release says "Yes."
WASHINGTON, DC – U.S. home prices rose 0.9 percent on a seasonally-adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.1 percent decline in April was revised to a 0.3 percent decline. For the 12 months ending in May, U.S. prices fell 5.6 percent. The U.S. index is 10.7 percent below its April 2007 peak.
It's tough to predict a bottom of the market, except in the rear view mirror. Seasonally adjusted prices from the government aren't always on target, and sometimes they have to eat their words, but still, I'm encouraged. Today, when my buyer clients ask Which way for home prices? I'm pointing them to this news release.