Signs of Strength in Home Prices

October 20, 2010
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Home prices showing signs of strength

Unexpectedly, a strong rebound in California’s real estate market aided to lift a key home price index for the eight month in a row.

That is precisely a good news for those who are planning to sell their homes this spring. The prices are now up for almost 4 percent from the bottom in May 2009; however, it is still almost 30 percent below the May 2006 peak.

The largest monthly gain was in Los Angeles, where the prices increased 1.8 percent from December. Real estate agent say there is a distinct sense that the worst of the downturn is over. According to Tony Middleton, a real estate agent with ZIP Realty who concentrates on the San Fernando Valley, buyers are “seeing that prices are creeping up.” “They’re losing bids on homes and they have to bid again.”

The prices in San Diego, meanwhile, rose by almost 0.9 percent. Phoenix had the third-largest gain at 0.8 percent.

Consumer confidence rebounded in March after a February plunge, according to a survey released Tuesday. The Conference Board’s Consumer Confidence Index rose to 52.5 in March, recovering about half of the nearly 11 points it lost in February.