Real estate is a dismal business these days. There is not a lot of very good news to go around. However, there is a scant glimmer of hope amid the doom and gloom. The last few consecutive months, home values have really risen. Home values from the end of May to the end of June 2010, as outlined by the Case Shiller Price Index, rose very slightly. Good news is hard to come by in real estate. It is one of probably the most negatively affected markets during the economic recession.
Just how are house costs going up?
20 cities are used to average out the cost of homes by Standard and Poor’s Case Shiller price index. According to the New York Times, the second quarter posted a 4.4 percent gain in home prices. Last quarter, prices had a 2.8 percent drop. Also, home prices for second quarter of 2010 are 3.6 percent higher than for second quarter of 2009. For July, home prices rose 1 percent over June.
What is the catch
Sales have dropped off when rates have slightly gone up. The homebuyer tax credit helped to spur home sales, but once the credit expired sales began to drop off. Home prices are likely to fall soon, also. That said, one of the economists for whom the Case Shiller Price Index is named, Karl Case, thinks that you will find lots of positives in the new data, as outlined by Bloomberg. Case thinks it will be an additional year or so before a more stable market emerges, and begins to grow again.
Much better than negative media
The homebuyer tax credit was only a finger in the dam. It provided an artificial and only temporary boost to property sales and home prices. True activity in real estate can’t resume until there is not anything keeping activity up or down. However, on the plus side, things are better than they were a year ago.
Find more info on this subject
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
