Housing Secretary tells Crowley: Now’s the time to buy

On the state of the housing market

CROWLEY: Do you think it’s bottomed out? If you’ve got the cash and the credit right now is it the time to buy?

DONOVAN: I think the answer to that is yes frankly. Housing is more affordable than it’s been in a generation. If you look at most of the important indicators of where the housing market is going they are improving. The number of people in default is declining. The number of people being foreclosed on is declining.

Home sales have been up six out of the last nine months. The one area that has been our biggest concern is home prices. And, as foreclosures come down, as the so-called shadow inventory starts to decline, that will help prices start to turn up.

A full transcript of Secretary Donovan on State of the Union with Candy Crowley can be found here.