According to the recent Standard & Poor’s/Case Shiller index report, home prices were 2% higher in August than they were priced in August 2011, which is an even greater increase than in the month of July.
Cities such as Las Vegas, Phoenix, Tampa and Miami, which have undergone some of the most severe price declines in recent memory, are experiencing a huge upturn. Phoenix has seen the most impressive recovery, increasing by 18.8% in just one year’s time.
Due to the increase in housing prices, homeowners are more willing to put their houses up for sale. In addition, potential buyers may be more inclined to purchase these homes in the near future as they take advantage of low mortgage rates, but are wary that prices may rise even further.
Although this report shows signs that the housing market is on the right track, analysts say a full recovery is still a long way off.