U.S. Home Prices Rise 0.7% in First Back-to-Back Monthly Gain in Two Years

[Purveyor]

Source: Bloomberg

By Kathleen M. Howley

April 22 (Bloomberg) -- U.S. home prices rose 0.7 percent in February from January, the first consecutive monthly gain in two years, a sign that low interest rates may be moderating declines in real estate values.

Prices fell 6.5 percent in February from a year earlier, the second-smallest drop in six months, led by a 19 percent decrease in the region that includes California, the most populous U.S. state, the Federal Housing Finance Agency in Washington said today. The gain in February from a month earlier matched the average of 10 estimates in a Bloomberg survey.

Mortgage rates have tumbled 1.6 percentage points in six months, making houses and condominiums more affordable. The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan increased 5.3 percent last week as Americans took advantage of interest rates near record lows. Home sales rose 5.1 percent in February from a month earlier, the National Association of Realtors said March 23.

“As demand firms, and once inventories of houses and a broad range of goods are brought into line with sales, economic activity should begin to stabilize,” Federal Reserve Vice Chairman Donald Kohn said in an April 20 speech in Delaware.

The inventory of properties on the market fell to a 9.7 month supply in February at the current sales pace, down from April’s high of 11.3 months, and sales rose 5.1 percent from a month earlier, the Realtors group said.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aDZB7iYmizno&refer=home

[SkyDaddy7]

1. Could it be...

The ship is beginning to turn around? If Obama gets things turning around before the 2010 midterm elections he will have destroyed the Republican Party of NO! And to be honest those on the left who have lost confidence in him already! Go President Obama!

[PNutt]

2. Wow! Could It Be That.........

Barack Obama and his economic dream team got it right? My oh my, how will the Washington Pube-Tards manage to explain that back at home? They will all be seeking some way to take all the credit for it, and blaming the Obama administration for failing to do something.

[Skink]

3. Mortgage defaults are rising.

Home prices are probably with in reason now.

[tomm2thumbs]

4. So i can sell my house for a dollar, seven cents now?

great

[PNutt]

5. Stupidity Cannot Be Helped....

If you paid an inflated price for your home....ie....more than it was truly worth, then what is your beef? You made the mistake!

[tomm2thumbs]

6. Welcome to DU - glad to have your new and fresh comments amongst us!

[Dr.Phool]

7. Better copy them, I don't think there will be many more.

[Doctor_J]

8. It's Bush policies! Last year's collapse was Obama's fault, this

year's recovery is Bush!

Get ready for Big media onslaught.

[AlphaCentauri]

9. No big deal yet, auctions of foreclosed homes may be trigger for the 0.7

also it would not make any good for the whole economy to have over inflated real state prices again

[AlecBGreen]

10. its probably temporary

investors think the market has bottomed out so the they're snapping up what they perceive to be cheap property.

IMO I dont think we've seen the bottom yet...

[roamer65]

11. We're experiencing the "1930" bounce.

We will soon find that the recession is actually a depression as the downturn continues.

[PSPS]

12. What a load

Of course, prices are going to go up between January and February. They always do, even in a down market. This means nothing -- only the year to year changes are important.

This is just another spin job, probably foisted onto Bloomberg in exchange for a full page ad purchased by ReMax. Notice the fictional inventory numbers are provided by a Realtor trade association. The real truth is that there are years of inventory in every major metropolitan area. They are just making that up.

For you potential buyers out there, don't worry about missing "the bottom." When it does come, it will stay there way for a very long time.