Really?? We have NO Inventory ~ for a turn around!

Home prices are finally turning around Single-family home prices picked up for a third month in a row in April, suggesting the recovery in the housing market is gaining traction, a closely watched survey showed on Tuesday. The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.7 percent on a seasonally adjusted basis, topping economists' expectations of 0.4 percent. On a non-seasonally adjusted basis, prices fared even better, rising 1.3 percent. Just three out of the 20 cities in the index saw declines in April on a seasonally adjusted basis. "It has been a long time since we enjoyed such broadbased gains," David Blitzer, chairman of the index committee at Standard & Poor's, said in a statement. "While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign." Compared to a year ago, prices were down 1.9 percent, beating expectations for a decline of 2.5 percent, and an improvement from the 2.6 percent annual decline seen in March.

Economists give Obama a 'D'

When it comes to handling the economy, neither Obama nor Congress make the grade. Responding to a survey, 20 economists gave the Obama administration and the current Congress a "D" for their poor performance on the economy. "Eleventh-hour decisions and kicking the can down the road do not provide certainty to businesses and individuals," said David Crowe, chief economist for the National Association of Home Builders. "As a result, economic decisions will also be postponed or made on the basis of the most conservative expectations without better indication of the future." Crowe is one of 10 economists to give the same grades to both the Obama administration and Congress. He gave each a grade of D. Sean Snaith, economics professor at the University of Central Florida, gave the failing grade to Obama, blaming overreach by the administration. But if economists were disappointed in the White House, many are far angrier with the partisan gridlock in the current Congress. Several economists said Congress was more interested in scoring political points than in helping the economy. "The administration and Congress share the same economic record," said Keith Hembre, chief economist forCanon T3i 18.0MP Digital SLR Camera with 18-55mm IS Lens - Digital Nuveen Asset Management in Minneapolis.

Inventory shortages stabilize home prices

The average home price for non-distressed properties increased 1.7% from April to May, suggesting that a decline in overall inventory is now pushing up prices, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The average price for a short-sale still slipped 0.7%, while the price on damaged REO properties increased to 1.8% and 1.5% for move-in ready REOs. In its latest HousingPulse Tracking Survey, Campbell Surveys cited declines in home inventory levels as one of the principal reasons for home price stabilization, especially in areas that have experienced large price declines in the past six years. Multiple factors are causing the shortages—namely homeowners keeping their houses off the market while prices are still low. In addition, those who are underwater are staying in place and cannot move until more of the debt is paid down. The survey also says appraisals are keeping prices down. The survey cites at least one real estate agent in Florida as saying appraisals are keeping prices from going up because appraisals that come in under the contract price are stopping "natural valid appreciation."