Bloomberg News

Housing Recovery Seeds Planted as Affordability Rises, Case Say

January 31, 2012

Jan. 31 (Bloomberg) -- The seeds of a housing recovery are “being planted” even as residential real-estate prices fell more than forecast in November, according to Karl Case, co- creator of the S&P/Case-Shiller index that measures property values.

“Housing is becoming more affordable” and efforts are underway to deal with a backlog of foreclosed properties, Case, said today in an interview on Bloomberg Radio’s “Bloomberg Surveillance,” with Ken Prewitt and Tom Keene.

The S&P/Case-Shiller index of property values in 20 cities declined 3.7 percent from November 2010 after decreasing 3.4 percent in the year ended in October, the group said today in New York. Economists projected a 3.3 percent drop, according to the median estimate in a Bloomberg News survey.

“It’s a bit like a sub pump,” said Case, who created the index with fellow economist Robert Shiller. “Water starts climbing up and then you got this back log of order that keeps things under wrap.”

To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net

To contact the editor responsible for this story: Pierre Paulden at ppaulden@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus