The End of the Housing Bust?

I’m reading with some glee all the national coverage of the end of the housing bust. “Home Prices Rise Across the U.S.” says the front page of the Wall Street Journal. “3-Year Descent in Home Prices Appears At End,” says the same spot in the New York Times. CNBC devoted an hour to the subject last night. Newsweek has called the recession over on its cover this week. The numbers are cheery. New housing starts were up 3.6% in June. Existing home sales were up 3.6%. New home sales jumped 11%. Even Yale Professor Robert Shiller, who told Fortune just a couple of weeks ago that “prices will continue to fall for a while, but at a slower pace, and then stabilize,” is now more bullish. Fifteen of the twenty cities in his Case-Shiller Index saw a price improvement in May, after 34 months of declines. “The change in momentum here is very significant,” he says now.

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