New data released Tuesday said for the third straight month in August U.S. home prices rose, a key sign for a broad and continuous housing recovery.
The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1.2 percent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 percent from August a year ago, the annual declines have slowed since February.
In Miami, The price index rose 1.1% for South Beach real estate and homes.
We have not seen prices at these levels seen since August 2003 and have fallen almost 30% from the peak in May 2006.
``All the speculative price increase that occurred between 2003 and 2005 has disappeared,'' said David Dabby, a Coral Gables-based real estate analyst. ``We are basically back to 2001 or 2002 levels, which were economically justified.''
The latest national index shows a extensive turnaround, with prices rising month-over-month since June in 15 metro areas.
But a backlog of foreclosures and double-digit unemployment, could keep housing prices relatively flat for months to come, experts said.
It is also unknown whether or not the temporary federal tax credit goven to first-time buyers will be extended to help promote sales.
The tax credit offers first-time home buyers a credit of 10% of the sales price up to $8,000. Congress is being lobbied by the real estate indusutry to extend the credit past the November 30th deadline. Top Democrats in the Senate are devising a plan that would extend the credit but slowly phase it out over the next year.
A professor of real estate and finance, Ken H. Johnson, at Florida International University, has been renting since he moved to South Florida in 2005. His first reaction to Tuesday's news was, ``I wonder if it's time to buy.''
All metropolitan areas saw gains in August. In Las Vegas, Seattle and Charlotte, N.C., prices fell to their lowest levels. Prices in Las Vegas have plunged by 56%, the largest peak-to-trough decline of all 20 cities since peaking in April 2006.
Contributed by MLR Realty
Home