US Home Prices Increase For 2nd Straight Month

Single-family home prices rose in March, a second straight month of gains according to a survey released on Tuesday. The increase in housing prices could signal the beginning of stabilization in the housing market.

According to The S&P/Case Shiller composite index of 20 metropolitan area housing prices increased by 0.1 percent in March although the number was still shy of economists’ forecasts of .02 percent.

MSNBC reports:

“On an unadjusted basis, the index was unchanged. Prices in the 20 cities were down 2.6 percent year over year, improving from the 3.5 percent yearly decline seen last month.”

During the entire quarter prices were down 2 percent year-over-year, an improved scenario compared to 2011 in which a 3.9 percent decline was experienced.

In the meantime the media pricing for new homes was up 4.9 percent in April, year over year, while existing home sales comparing April 2010 to April 2011 saw a 10 percent increase.

A first quarter report revealed that home prices still have a long way to go with almost 16 million Americans owing more on their home than they are worth.

The survey also found that some areas are outperforming the market in terms of increased housing prices, for example metro Phoenix has the highest price increase at 6.6 percent while Denver sits in second place at 2.6 percent.

The Case Shiller report on an overall basis found that housing prices posted their smallest decline since the housing crash of 2008.

Even with the smaller decline the cost of a home still sit around 2002 values since taking their big tumbles, prices that will likely take years to correct.