The seeds of a housing recovery are “being planted” even as residential real-estate prices fell more than forecast in November, according to Karl Case, co-creator of the S&P/Case-Shiller index that measures property values.
“Housing is becoming more affordable” and efforts are underway to deal with a backlog of foreclosed properties, Case, said today in an interview on Bloomberg Radio’s “Bloomberg Surveillance,” with Ken Prewitt and Tom Keene.
The S&P/Case-Shiller index of property values in 20 cities declined 3.7 percent from November 2010 after decreasing 3.4 percent in the year ended in October, the group said today in New York. Economists projected a 3.3 percent drop, according to the median estimate in a Bloomberg News survey.
“It’s a bit like a sump pump,” said Case, who created the index with fellow economist Robert Shiller. “Water starts climbing up and then you got this back log of order that keeps things under wrap.”
Shiller, speaking with Keene on Bloomberg Television’s “Surveillance Midday,” said today buying real estate right now as an investor doesn’t “strike me as a clever move.”