Stabilizing Prices Bring Forecasts Of Future Improvement

A roundup of price reports and recent housing data from the National Association of Realtors finds that, though home values showed slight declines in January, there are signs of further price stabilization due to improving inventory levels, declining distressed property sales, and strong buyer traffic. And, when excluding distressed property sales, home prices actually showed a slight increase in January. Early measurements for February show positive improvements in prices. For example, existing home prices saw their first year-over-year increase since 2010 and distressed property sales, which are typically sold at a discount and put downward pressure on prices, have fallen to 34 percent of all sales, down from 40 percent a year ago. Declining inventory and fewer distressed sales should provide further support for home prices. And, with high affordability and rising rents, purchasing a home may be the more affordable option for house hunters this year.