8.27.09 Home Prices Rising

There was a 2.9% increase in national home prices from the 2nd quarter of 2009 compared with the 1st quarter, according to the Case-Shiller index. Home sales are being helped due to the government economic stimulus effort, but also due to home prices reaching affordable levels for many buyers. Many buyers are taking action in recent months to try to purchase a home before prices rebound and begin to go up again. There is good momentum in the market right now. However, there could still be problems with a full housing recovery due to the problem of foreclosures, a high unemployment rate, and an influx of bank-owned properties into the market which would increase inventory and put a damper on increasing home prices.