New Data Shows More Home Price Gains

New Data Shows More Home Price Gains
AP--Sept 29

Home prices rose for the third month in a row, a closely watched index said Tuesday.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose 1.2 percent from June to a reading of 143.05. Though home prices are still 13.3 percent below July a year ago, the annual declines have slowed in all 20 cities for the sixth straight month.

The index is down about 33 percent from the peak in mid-2006. Home prices are now at levels not seen since the third quarter of 2003. And prices in Las Vegas, Detroit and Seattle are still falling on a monthly basis.

"We do need to be cautious in coming months to assess whether the housing market will weather the expiration of the federal first-time buyer's tax credit in November, anticipated higher unemployment rates and a possible increase in foreclosures," said David M. Blitzer, committee chairman for the Case-Shiller index.

First-time homeowners can qualify for a tax credit worth 10 percent of the purchase price, up to $8,000, but it expires at the end of November.

Still, there are clear positive trends: 13 metro area posted at least three straight months of price gains.

Copyright 2009 The Associated Press. .

2009-09-29 09:17:56