After a plunge lasting three years, houses have finally become cheap enough to lure buyers. That, in turn, is stabilizing prices, generating hope that the real estate market is beginning to recover.
Eight cities, including Chicago, Cleveland, Denver and San Francisco, showed price increases in May, up from four in April and one in March, according to data released Tuesday. Two other cities, Charlotte, N.C., and New York, were flat.
For the first time since early 2007, a composite index of 20 major cities was virtually flat, instead of down.
“We’ve found the bottom,” said Mark Fleming, chief economist for First American CoreLogic, a data firm.
UPDATE: Federal Reserve opines, too, that the economic outlook is improving.