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Thursday, February 25, 2010

Where house Prices are actually increasing


This month, after three years of record declines, the battered housing market has shown a few signs of hope. Tuesday the S&P/Case-Shiller 20-city Home Price Index, which is a gauge of sale prices in the country's major markets, shows a seasonally adjusted 0.3% increase between November and December.

This, in addition to February news from the Department of Commerce that housing starts were up 2.8% in January, gives economists expect for a recovery. All of this portends good things for the national market in general - but in some exacting areas there are very clear signs of life.

Asking prices on single-family homes have raised as much as 36% from the previous year in some cities; an indicator that Michael Simonsen, CEO of Altos Research, a Mountain View, Calif. market research firm, says reflects "a bounce off the bottom of the bubble bursting."
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