The stabilisation in US home prices won’t last, according Goldman Sachs. BofA Merrill Lynch Global Research see a 'treat' rather than a retreat.

'The risk of renewed home price declines remains significant,' Alec Phillips, head of Goldman’s Washington office, said. 'Our working assumption is a further 5% to 10% decline by mid- 2010.'

'We should expect subdued home price appreciation over the next few years,' wrote Merrill Lynch’s Ethan Harris and Drew Matus.