Best U.S. Housing Markets 2011 - Former Federal Reserve Chairman Alan Greenspan said a recovery in the U.S. housing market may not be solid until home prices rise by at least 10 percent.
“Stabilization is important not only to the housing market, but to the economic recovery as a whole,” Greenspan said today in a speech at the Brookings Institution in Washington. “Home prices will have to rise unequivocally and perhaps by 10 percent or more before signs of a full-fledged housing recovery become unambiguous.”
Home values in the U.S. fell during the fourth quarter as mounting foreclosures sidelined buyers who think prices may decline further. The median price of a single-family home dropped from a year earlier in 71 of 152 metropolitan areas tracked by the National Association of Realtors, the group said yesterday.
The number of homes in foreclosure in December rose to a record 2.2 million, according to Lender Processing Services Inc., based in Jacksonville, Florida. Including foreclosures and late payments, there were 6.87 million non-current mortgages, the company said.
Best U.S. Housing Markets 2011