First Housing Price Increase in 3 Years!

Nationally, home prices increased in February 2010 for the first time since 2006. Part of the increase can be attributed to the tax credits to homebuyers and pent up demand.

The Case-Shiller home price index, released on Tuesday, revealed a tight 0.6 percent gain.  Of the 20 cities tracked by the index, 11 showed continued declines.  The South Florida Metropolitan Area (Miami-Fort Lauderdale) saw a decline of a bit less than 0.4 percent.  This indicates that there are still bargain properties available.  There is a light at the end of the tunnel.  The South Florida market typically trails the California markets by about a year.  The three California markets
included in the index (Los Angeles, San Diego and San Francisco) each gained when comparing February 2010 vs. February 2009.  If history continues to repeat itself South Florida could be in full recovery in less than 12 months from today. 

And there is a "risk that prices could decline further before experiencing any sustained gains," cautioned David Blitzer, chairman of the S&P index committee.  "It is too early to say that the housing market is recovering."

We have certainly benefited from the temporary tax credit that expires in two days (April 30th).  First time buyers can claim up to $8,000 and homeowners relocating can get up to $6,500. 

The Associated Press states, "The Case-Shiller index measures home price increases and decreases relative to prices in January 2000.  The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index."  South Florida's February 2010 reading equaled 147.21, adjusted seasonally down from 147.6 in February 2009.

Additional good news including an increase in the consumer confidence rating for April and positive earnings reports companies such as Whirlpool Corporation and UPS, Inc give us an inkling of of hope that the worst of the recession is behind us.