Former Federal Reserve Chairman Alan Greenspan said on Tuesday that
the seeds of a bottoming in plunging U.S. home markets were becoming
Speaking to a National Association of Realtors summit, Greenspan
said there were reasons to believe that bulging inventories of unsold
homes were dwindling and that should bring some stability to prices.
looks to me, judging from the balancing of household formation on one
hand, conversions, mergers, demolitions...that we're at the edge of a
major liquidation in that excess of inventories which I suspect and I
hope will be of such a pace that it will stabilize prices, the former
Fed chief said.
So as I look at the housing market...we are finally beginning to see the seeds of a bottoming, he added.
noted that in areas where the housing slump was steepest, like
California, Nevada, Arizona and central Florida, sales appeared to be
picking up even if prices are not yet showing the same rebound.