Economist: Plunge in U.S. Home Prices Is Over

The drastic drop in U.S. home prices has ended, says James O'Sullivan, chief economist at MF Global.

His outlook for the U.S. housing market is positive, noting that it has been six months since the plunge last May.

“It looks like the big drop is over,” O'Sullivan told Bloomberg TV.

He said there remain risks and headwinds but with low mortgages rates, declining inflation and the lower home prices, he predicts the market “seems to be turning.”

Consumer confidence has also risen while affordability remains high, O'Sullivan said. “I think on balance, the pluses outweigh the minuses,” he said. (more)