Others say this may be more about foreclosure delays and limited supply, which could change this summer.
“It’s unlikely that house prices can continue rising at this sort of pace for much longer,” warns Paul Diggle at Capital Economics. “After all, the tight supply conditions that have led to sharp price gains are unlikely to persist now that banks appear to be processing foreclosures and short-sales at a quicker pace.”
While it may be tempting to call a bottom to prices, HIS Global Insight’s Patrick Newport warns it is, “premature to do so.” He also cites a large foreclosure pipeline and the possibility of a weakening economy. “The most likely scenario, in our view, is that home prices will zigzag over the coming months, rising during the selling season, slipping in the fall,” says Newport. “We are expecting home prices to cautiously start moving up in 2013, however.”
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