The housing market is lower however the cost of homes is up

Good 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. It turns out that U.S. the cost of homes have been rising, if only marginally, for the last few consecutive months. Home values from the end of May to the end of June 2010, as outlined by the Case Shiller Price Index, rose very slightly. It is great to hear even just a little very good news about real estate, thinking about what market conditions have been. Source for this article – Housing market gets a reprieve as home prices slightly improve by Personal Money Store.

Home costs might use an increase

Standard and Poor’s Case Shiller price index, which tracks real estate activity in 20 cities, has showed a gain in home prices in the second quarter of 2010. There was a gain over the entire second quarter of 2010. Prices increased by 4.4 percent in that time, as outlined by the New York Times. The first quarter didn’t go so well. Prices fell 2.8 percent. Home prices are also up 3.6 percent since the end of second quarter 2009. Prices rose 1 percent during July.

That isn’t the complete image though

There is a hitch, of course. Home prices may have risen, but sales are lower. The homebuyer tax credit helped to keep sales going. Nevertheless, sales started to fall off once the credit lapsed. Home prices are likely to fall soon, as well. Nevertheless, not all is lost. Karl Case, the economist who the index is named for, according to Bloomberg, thinks there are some positives within the new data. Case thinks it can be another year or so before a more stable market emerges, and begins to grow again.

Not the worst news ever before

The homebuyer tax credit was only a finger in the dam. It provided an artificial and only temporary boost to house sales and the cost of homes. True activity in real estate cannot resume until there isn’t anything keeping activity moving upward or down. That said, there is some consolation. Things are better than last year.

Additional reading

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