Homes Prices Rise for 2nd Straight Quarter

Home prices have risen for the second consecutive quarter. Prices still remain 9% lower than last year, according to a report that was issued last week, but nationwide, prices rose 3.1% in the 3rd quarter.

“We have seen broad improvement in home prices for most of the past six months,” says David Blitzer, Chairman of the Index Committee at Standard & Poor’s.

Prices are still below a year ago, down 8.9% compared with the third quarter of 2008.  Nevertheless, that’s an improvement from the double-digit price decreases the index had been reporting; the second quarter year-over-year decline was 14.7%. Prices had dropped 19% year-over-year during the first quarter of 2009. 

Stopping the home price slide is an important factor in any economic recovery. Falling prices increase the number of “underwater” homeowners, those who owe more on their mortgage balances than their homes are worth. Increasing prices are a sign that the housing market is making a slow but steady comeback.