I thought we were at the bottom? | The Compost Bin | Forums

I laugh every time I hear someone say we are at the bottom of the housing market. I know someone who stopped paying on their property in 2009 and they still haven't been foreclosed on. The banks have a huge phantom inventory that they are holding on to to keep real estate prices artificially propped up.

Home prices hit new post-bubble lows in February, according to a report out Tuesday.

The S&P/Case-Shiller home price index of 20 cities recorded a decline of 3.5% from 12 months earlier. Home prices have not been this low since November 2002.

"Nine [housing markets] hit post-bubble lows," said David Blitzer, spokesman for S&P. Those nine markets include Atlanta, Charlotte, Chicago, Las Vegas and New York.

The main challenge for housing continues to be foreclosures and other distressed property sales, according to Pat Newport, an analyst for IHS Global Insight.

"We still have 6 million homeowners who are late on their payments," he said. "We'll still have lots of foreclosures, which will depress prices."

The good news is that some of the worst hit of the index's 20 cities seem to be pulling out of their tailspins.

"Some [cities], which have declined considerably over the last five to six years now have begun to exhibit an uptick in home prices," said Luis Vergara, a director with Mission Capital Advisors.

http://finance.yahoo.com/news/home-prices-lowest-since-2002-142800045.html