Home Prices Bottomming Out? Not So Fast

Think the housing market has finally hit bottom and people will start buying again?
Yeah, right!

A home price bottom could stimulate real estate demand, but contrarians are betting against a recovery in 2012.  In fact, Lance Roberts, CEO of StreetTalk Advisors, is pushing back at reports claiming affordable home prices will lure  consumers. Despite affordable prices, Roberts says consumers are too over-leveraged to buy a home and unable to qualify for a mortgage or save for a 20% down payment.
Roberts says a recent National Association of Realtors housing affordability index is overly optimistic in its suggestion that low prices could stimulate activity. He sees 2012 as another year of lagging sales, considering the average household debt for Americans over the age of 16 comes to $96,229 per person. In addition, the average income before taxes is roughly $54,110 and many Americans have a debt-to-income ratio of 177.8%, making it difficult for them to qualify for a home loan.

Home prices bottoming out? Not so fast « HousingWire