Housing prices will finally increase in ... 2013? 2014?
There’s a growing consensus that housing prices are more or less hitting bottom this year. But it’s still unclear when they’ll go from flat to rising: Calculated Risk predicts that year-over-year housing prices will start to increase in early 2013, while Merrill Lynch is more pessimistic, expecting “roughly flat home prices this year and next with modest growth in 2014,” according to a new research note. “We continue to believe the recovery will not begin in earnest until 2014,” the firm concludes.
New numbers from the Federal Housing Finance Agency confirmed the stalled recovery: The FHFA reported that its housing price index remained unchanged in January — 0.8 percent below January 2011 levels.
That said, there are parts of the housing market that are starting to recover faster than others. The Wall Street Journal points out that investment in residential U.S. real estate — which encompasses new home building and renovations — is on the rise.