The S&P/Case-Shiller national home-price index declined 2.5 percent in the fourth quarter of 2009, compared with the fourth quarter of 2008. That’s actually a huge improvement from a year earlier. In the fourth quarter of 2008, national home prices fell 18.2 percent from the fourth quarter of 2007.
Digging deeper into the S&P/Case-Shiller, there are stronger signs that the housing market is improving:
* Home prices fell by 11 percent for the six months ended in April 2009.
* Home prices then rose by 5 percent in the following six months, through October 2009.
This was the sharpest turnaround since the S&P/Case-Shiller index began tracking home prices, more than 20 years ago. Therefore, if you are interested in buying a home, don’t wait. Prices probably won’t go much lower than they are now, and they may increase during 2010.
Conversely, this probably is a good time to think about selling, if that’s your plan. As home prices start to rise and sentiment improves, buyers are likely stop waiting for bargains and may start placing realistic bids.
