The worst contraction in the housing sector since the Great
Depression, now in its fourth year, shows signs of reaching a bottom.
Indicators of both demand and supply have posted modest recoveries from the
record lows reached in H1 2009, though they remain sharply depressed below
historical levels. 

In a recent research note RGE’s Prajakta Bhide and
Christian Menegatti provide an assessment of the current condition of the U.S.
housing sector and forecast home price dynamics for each of the 10 cities of the
S&P/Case-Shiller C-10 index.  They also provide nationwide price
forecasts.  They conclude that some of the improvements registered on the
demand side in the recent months might be of a temporary nature and that home
prices might fall further in the months ahead.

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Check out: Is the U.S. Housing Sector Bottoming Out? by Prajakta Bhide and Christian Menegatti