Home prices rose for the fifth straight month and posted the second quarterly increase, but the pace of appreciation in September slowed and was less than expected, according to Standard & Poor's/Case-Shiller indexes. David Goldberg, homebuilder and building products analyst at UBS, shared his insight on the housing market.
“The numbers are somewhat in line with what we’ve been hearing from public private builders that we talk to, which is we see some stability in home prices, but it’s still too early to call a bottom in prices and you’ve got to see what happens as we move into next year and the spring selling season,” Goldberg told CNBC.
Goldberg said he expects more foreclosures to come through the housing system, but given the reasonable affordability, there will be buyers to absorb the demand.
“But what you’re going to see is very gradual home price appreciation because there’s so much supply,” he said.
“So next year, we see maybe a percent, 2 percent [rise] after we see the 3 to 5 percent decline. It’s going to be fairly steady and a very gradual recovery—it’s certainly not going to be V-shaped in housing.”
In the building products sector, Goldberg said he likes Mohawk .
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No immediate information was available for Goldberg or his firm.