Real estate prices are holding steady, for now, according to a Case-Schiller index. The report says that home prices rose .6 points between June and July and that year over year the price index shows a 3.2 point increase. The challenge is that new housing starts are down, and foreclosures are up, both of which indicate a decline in home prices.
The Case-Schiller index chart above gives a very clear depiction of how housing prices changed over the last decade. As it evident in the chart, the prices seemed to hit their low point in the third quarter of 2009. It will be important to watch the price index over the next three quarters to see if the slow price increase maintains its upward trend. While volumes are low, and sale times are long, real estate prices are slowly making a comeback.