Spring U.S. housing market hints at awaited recovery

By Julie Haviv - Analysis

NEW YORK (Reuters) - It is a little too early to celebrate new life in the housing market, but Americans should soon have something to party about if the spring housing season is any gauge.

With sales rising and home price declines moderating in many regions of the country, the hard-hit U.S. housing market is showing some signs of stabilization.

"The long and painful crash in the housing market is coming to an end," said Mark Zandi, chief economist at Moody's Economy.com in West Chester, Pennsylvania.

However, analysts said bumps in the road remain for any sustained recovery as a frenzy of foreclosures loom large in the residential real estate market. Economists believe a steadier U.S. housing market-- in the midst of its worst downturn since the Great Depression -- is key to a turnaround.

April's home price data was one of the more encouraging signs of late. The Standard & Poor's/Case-Shiller Home Price Indices showed the annual decline of the 10-city and 20-city composite indexes improved, though prices are still falling.

On a month-over-month basis, S&P's index of 20 metropolitan areas showed home prices fell just 0.6 percent in April versus the 2.2 percent decline the prior month. Eight areas showed gains on a month-over-month basis, the most since June 2008.

David M. Blitzer, chairman of the Index Committee at Standard & Poor's in New York, said the market is improving, but cautioned against reading too much into one month's data.

"Some gains, however, can be chalked up to seasonal factors, so it may be too soon to call a recovery," he said.