Economists at Fiserv expect rising home sales will lead to higher values in half of all U.S. metropolitan areas over the 12-month period ending September 30.
But that improvement, however, will not stop prices on average -- as measured by the Fiserv Case-Shiller house price index -- from falling 2.7% nationwide by the end of the third quarter of 2012.
A true turn in house prices will not happen until 2013 when value will rise by close to 4%, according to Fiserv chief economist David Stiff. "The other big story is the continued improvement in housing affordability," Stiff said.
The monthly mortgage payment for a median-priced home has fallen 45% to $640 since house prices peaked in 2006.
"Mortgage payments now account for 14% of monthly median family income, as households made more progress in repairing their balance sheets," Stiff said.
