Raising the Roof on Home Prices?

May 23, 2011 |

That's right, house prices are currently going up, though you wouldn't know it from the grim parade of negative headlines of late. Almost exactly two months ago, we wrote that, after a very rough several months, the leading indicators we monitor were suggesting better days ahead for home prices throughout most of the country. We still think a spring bounce is in the cards for the popular Case-Shiller indexes relatively soon. Rising prices have been highly evident in the median listing prices reported throughout the country for several weeks now. We think this will trickle down to the popular indexes sooner rather than later.

Of course, seasonality is driving much of what's currently happening. At this time of year, in a normal real estate environment, prices usually show resilience. We can't rule out the fact that this year's bounce is nothing more than that. Nor can we rule out the notion that seasonal weakness in the fall and winter months won't significantly overwhelm any spring or summertime gains, resulting in yet another annual decline for 2011.

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