The S&P Case Shiller Index numbers released today surprisingly reveals improvement in the housing market. The index is typically the most bearish of all the real estate indices, yet the numbers show prices increases in the past month. Keep in mind prices are still down year over year by 17.1%, but the numbers have improved for 4 consecutive months.
New homes home sales have also improved and increased by 11% in June.
Prices in Tampa which represents Orlando in the index remained the same last month. It’s been one of the biggest decliners and no change is a big improvement.
So are we at the bottom? My honest answer is I don’t have a clue. There may be some effects from the deadline for the first time home buyer tax credit expiring in October as well as the foreclosure market.
The lower price ranges have shown the most improvement and that means both the foreclosure and tax credit are affecting this market. I can report from recent experience that investors and first time homebuyers are coming back into the market.
After the past few years, I’ll take any good news about real estate. The Case Shiller Index is indicating that prices have turned in the other direction but it doesn’t take into the account how foreclosures and the tax credit is affecting the market.