Great news for the United States real estate market is few and far between. However, there is a scant glimmer of hope amid the doom and gloom. The last few consecutive months, home values have actually risen. The Case Shiller Price Index monitors home prices across 20 United States of America cities. Homes sold from the end of May to the end of June 2010 had a gain in rates, and the two months before did too. There aren’t lots of optimistic assumptions that are being made about real estate these days, so it is a welcome change to hear good news.
Small gain in house prices
Real estate activity is tracked by lots of different organizations. However, Standard and Poor’s Case Shiller price index is one of the best authorities for home values across 20 cities. According to the New York Times, the second quarter posted a 4.4 percent gain in home prices. The first quarter of this fiscal year saw a fall in home prices of 2.8 percent. Home prices are also up 3.6 percent since the end of second quarter 2009. Costs rose 1 percent during July.
There is a catch
Along with the rise in home prices, sales are trending downward. The homebuyer tax credit helped to spur home sales, however once the credit expired sales began to drop off. It’s likely that home prices will fall again. That said, one of the economists for whom the Case Shiller Price Index is named, Karl Case, thinks that you will find a lot of positives in the new data, according to Bloomberg. Case thinks that the market hasn’t stabilized completely yet. He predicts at least one more year before the real estate market levels out.
Not really the most detrimental media ever
The tax credit was a stall at best; sales were stimulated and so were prices, however once it wore off the market started trending downward again. True activity in real estate can’t resume until there is not anything keeping activity up or down. That said, there is some consolation. Things are better than last year.
Bloomberg
bloomberg.com/news/2010-08-31/karl-case-sees-a-lot-of-positive-stuff-in-housing-price-data-tom-keene.html
NY Times
nytimes.com/2010/09/01/business/economy/01econ.html?partner=rss and emc=rss
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