Home prices appear to be flat-lining

A recent Reuters poll found U.S. economists are split on whether they believe the government should continue to launch programs and stimulus efforts to support the flailing housing market, as U.S. home prices appear to be stagnate.

Reuters reports the five-year drop in home prices is expected to end in 2012, leading the way for a weak recovery in 2013. Because the price declines appear to have ceased, many economists believe it is a sign that prices may have reached bottom and will start to stabilize before slowly recovering in early 2013.

Economists predict prices will increase 1.5 percent in 2013, helping push many struggling homeowners above water on their home loans. However, the excess inventory of foreclosed and distressed homes on the market will continue to keep recovery meager until the stock is cleared out with market demand, the source reported.

According to USA Today, Jamie Dimon from JPMorgan Chase believes the housing market is very close to reaching bottom, and attributes the potential stabilizing of home values to the record low mortgage rates and depressed home prices.

However, Jed Kolko, economist for Trulia, told the source the build up of foreclosures and other properties will push prices even lower in 2012, before a bottom is reached.

"This year will feel a lot better to builders, investors and real estate agents than to consumers," Kolko said.

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