A Rare Hope for Decent News on Housing
Housing markets haven't found a bottom so much as a temporary foothold.</br></br>The S&P/Case-Shiller gauge of home prices in 20 major cities, released Tuesday, showed a monthly gain in April--its first such increase since July 2010. A pair of reports due Wednesday may build on that, creating a rare stretch of decent news for the beleaguered market.</br></br>Pending sales of previously owned homes--a leading gauge of closings--are expected to rebound by at least 10% in May after falling 11.6% in April. Meanwhile, home builder KB Home, the nation's fifth-largest by 2010 sales, will be out with fiscal second-quarter results that may show some signs of stabilization after a nasty first quarter.</br></br>When it comes to U.S. housing, though, good news is relative.</br></br>On a yearly basis, the Case-Shiller index is down about 4%. Capital Economics reckons prices won't start rising consistently until 2014. Despite rock-bottom interest rates, mortgage applications remain tepid. Moreover, the glut of roughly 4.5 million homes in some stage of delinquency or foreclosure will continue to stalk the market.