Markets Sees Silver Lining in Depressed Housing Prices
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The pace of the fall in home prices has moderated, but there has been no turnaround in home prices in the US, according to S&P/Case-Shiller Home Price Index released Tuesday. Instead of rebounding, home prices in many areas are reaching new lows. The national composite fell by 2.0 percent in the first quarter of 2012 and was down 1.9 percent versus the first quarter of 2011.
“While there has been improvement in some regions, housing prices have not turned,” says David Blitzer, Chairman of the Index Committee at S&P Indices. “This month’s report saw all three composites and five cities hit new lows.”
On the brighter side, twelve out of twenty cities saw average home prices rise from February to March. After six consecutive months of price declines across most cities, many analyst are interpreting this is a bullish sign since it might signal the thorn of falling home prices could soon be removed from the side of the U.S. economy.
The SPDR S&P Homebuilders ETF (NYSE: XHB) which tracks stocks of homebuilders in the U.S. was up 1.3 percent at last check following the release of the data. Broader markets including the S&P 500 were also up.
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“While there has been improvement in some regions, housing prices have not turned,” says David Blitzer, Chairman of the Index Committee at S&P Indices. “This month’s report saw all three composites and five cities hit new lows.”
On the brighter side, twelve out of twenty cities saw average home prices rise from February to March. After six consecutive months of price declines across most cities, many analyst are interpreting this is a bullish sign since it might signal the thorn of falling home prices could soon be removed from the side of the U.S. economy.
The SPDR S&P Homebuilders ETF (NYSE: XHB) which tracks stocks of homebuilders in the U.S. was up 1.3 percent at last check following the release of the data. Broader markets including the S&P 500 were also up.
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