Home Prices Rise For Second Continuous Quarter

Although the fate of the economy and housing market are still uncertain, home prices rose in May for the second straight month. The news from Standard & Poor’s/Case-Shiller 20-city home price index shows a 1.3 percent increase in May from April. The federal tax incentives are being sited for the uptick in home values. Overall home prices have increased a solid 5.1 percent since hitting rock bottom in April 2009. Regardless of the swell, home values are still nearly 30 percent beneath the July 2006 apex.
Even though the increase was larger than expected, experts believe that it will be a short-lived victory. Historically speaking, May has always been a strong home industry time period. During the spring real estate market, there is more sales competition that may force an increase in real estate prices. After that fever pitch, it is not uncommon to see home prices decline.
This years spring market season was fueled by fervor of activity courtesy of the expiring first time homebuyer’s incentive. Previously, first time and repeat homebuyers were able to receive thousands of dollars in tax credits as part of the Obama’s administrations economic stimulus plans. The hefty tax credit offer originally expired Real Estate Commission California on April 30, 2010 and many first time consumers rushed to get all the paperwork associated with their home purchase completed in time to qualify. Recently Congress voted to extend the program until September 30, 2010 to give buyers who contracted their sale place by April 30, 2010, a little bit more time to finalize the transaction.
Although the housing market may have finally stabilized, Christopher Low, the chief economist at FTN Financial stated, “It will be a long time before they recover back to When Should You Sell Your First House where they were before.” Although that is sad news for the housing industry as a whole, it is great news for consumers still looking to score great home value bargains.

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