Home prices show 1st annual gain in 3 years

[NNN0LHI]

http://www.chicagobreakingbusiness.com/2010/04/home-prices-show-1st-annual-gain-in-3-years.html

Published on April 27, 2010 8:34 AM

Associated Press | U.S. home prices in February posted their first annual increase in more than three years, though it's too early to say the housing market is recovering.

Despite the 0.6 percent increase on a non-seasonally adjusted basis, 11 of the 20 cities in the Standard & Poor's/Case-Shiller home price index showed declines.

The last time prices rose on a year-over-year basis was December 2006. But economists polled by Thomson Reuters had predicted prices to rise 1.2 percent in February.

[QC]

1. I just bought a house for slightly more than half its 2005 sale price.

Many of us out here could never have afforded a house if the market had not corrected itself after its absurd bubble highs, so I am not entirely sure if it is always and everywhere a good thing for house prices to go up and up and up.

In fact, I would say that in many markets, including mine, houses are still overpriced.

[NightWatcher]

2. when a home that 7 years ago was valued at 200K, last year was valued at 100K, is now valued at 102K

recovery might be a strong word

[SocialistLez]

3. ::sigh::

While I feel for those who have lost value in their homes, I think banks should mortgage those houses for their TRUE worth, not their worth at the height of the bubble.

I personally think home prices should come down more.

[FarCenter]

4. There is weakness in the markets that have declined least since their peaks

In the seasonally adjusted data, the metro areas that have declined most since their peak prices (e.g. Las Vegas at down 56%) are all essentially flat.

The metro areas that have declined least since their peak prices (e.g. Dallas at down 6%) mostly declined from January to February.

This is not a good sign.