Quarterly Home Prices on the Rise

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The average prices paid for homes purchased in the second quarter of 2009 with mortagages bought by Fannie Mae and Freddie Mac rose 1.7 percent from the first quarter.  This marks the first time in two years that prices rose in all nine regions Freddie Mac monitors.

“The pickup in home prices growth rates is consistent with other housing market indicators that show home sales and single-family construction up in the second quarter,” said Freddie Mac chief economist Frank Nothaft. “The Spring is generally the strongest buying season each year, and we normally see home price growth respond similarly [and] this year was no exception.”

Separately, the National Association of Realtors reported Tuesday pending sales of existing homes rose 3.2 percent from June to July, the sixth straight monthly increase in pending home sales. That is the longest streak of gains since NAR started keeping track in 2001.

With the $8,000 government homebuyer tax credit I would predict that we will see prices and home sales to continue to rise through the end of this year.  Interest rates remain low and many builders and homeowners are offering some great incentives for home purchasers…that in combination with the tax credit makes this an excellent time to purchase a home.