The worst U.S. housing market since the Great Depression may be on the mend after prices rose in 18 of 20 U.S. cities in June, existing home sales hit a two-year high, and new home sales gained for a fourth consecutive month.The S&P/Case-Shiller home-price index, which tracks 20 metropolitan areas, showed a gain in 18 cities during June, according to an Aug. 25 report. Detroit and Las Vegas were the only two that declined. The Federal Housing Finance Agency national index showed a 0.5 percent increase during June with increases in five out of nine U.S. regions, according to an Aug. 25 government report.“The sense that something is changing is definitely in the air,” said Robert Shiller, the Yale University professor who, with economist Karl Case, created home price indexes in the 1980s now used by Standard & Poor’s. “After three years of decline, we might be seeing a turnaround.
By Kathleen M. Howley, August 27, 2009 Bloomberg
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