After endless bad news and staggering stats in the national real estate sector, the silver lining has finally appeared, giving the industry a small glimmer of hope that all is not lost- according to the S&P/Case-Shiller home price index released today, home prices rose 3.6% over the last twelve months.
Home prices rose 4.4% in the second quarter after a 2.8% dip in the first quarter but there are no signs as to whether a rise will continue. Economists and industry insiders are not jumping for joy however, and gains are not expected to be seen industry wide for some time (although there is no consensus as to when a recovery will take place).
There is also no consensus as to whether or not the flailing real estate sector is due to the expiration of the home buyer tax credits, nor a consensus as to whether the Obama administration or the Bush administration is to blame.
Home prices month in all 20 metro areas tracked by the S&P rose slightly except for Las Vegas which dipped another 5.2%. Year over year prices performed especially well in San Francisco with a 14.3% increase, San Diego up 11.2% and Minneapolis up 10.7% over last year.
Signs are up and signs are down and the real estate industry is still very much in flux with pockets of underperforming and overperforming markets with a mostly stagnant national outlook. What is the market like in your city?