Home Prices on the Rise, New Flame or Old Fizzle?

The widely watched released their home price numbers yesterday and   show that the U.S. National Home Price Index improved in the second quarter of 2009. The data covers 20 cities across the US and reports that the index rose quarter-over-quarter by 1.4% but fell 15.4% year-over-year.

While these numbers may be reassuring to some it has not been without a huge price tag as mentioned here. Can it continue when the stimulus money stops or will it just fizzle out as it did last year? It is hoped that it will create a sense of urgency among buyers that they must act now before they miss the bottom which is being experienced in many housing markets reporting multiple contract offers on listings, something we have not seen in a very long time.

So while this report gives cause for hope, there are still issues in unemployment, foreclosures, new housing inventory, first time homebuyer tax credit ending and Alt-A option arm resets all showing we still have a long road to recovery but could the worst be behind us?

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