Interesting housing commentary from Zillow today. They say the US housing market has bottomed (via CNBC):
The housing market appears to have finally hit a bottom, real estate website Zillow CEO Spencer Rascoff told CNBC Wednesday.
According to Zillow (Z) data, home values – which have been in freefall since before the 2008 financial crisis – have bottomed, Rascoff said on CNBC’s “Squawk on the Street”. “So five years into the housing recession and down 25 percent from the peak, we are finally at a bottom.”
As I’ve previously stated, I am not a believer in the idea that the housing market will experience an “event” style bottom. That is simply not consistent with past bubbles. If you study most of the major bubbles throughout history you’ll find that busts are followed by “workout” periods where the excesses of the boom get worked off over a very long period. That said, I don’t see huge downside in housing, but I think it’s a mistake to start claiming that house prices have made an event style bottom….At least that’s what history would tell us.