Real estate market progress is definitely occurring as home prices across the country start to increase from previous months. However, despite the increase over the last few months, home prices are still down in comparison to this same time last year. Growth is occurring, albeit slowly.
According to the S&P/Case-Shiller Home Price Indices, home prices have increased for the second quarter (from April until June) by 3.6%. Specifically, 19 of the 20 metropolitan cities that are tracked experienced an increase in home prices—with Portland coming in at 0.0%. However, when looking at these same 20 cities and comparing them to last year, home prices have declined 5.6%.
Which cities have shown the most progress and which one are have struggled the most over the last year?
According to the report, home prices in Minneapolis have fallen 10.8% over the last year. Portland follows with a 9.6% decrease with Phoenix coming in third with a decrease of 9.3%. However, Minneapolis pulled out a 3.2% change from May to June indicating growth. Portland remained stagnant from May to June with 0.0% with Phoenix barely making progress at 0.3%.
On the other end of the spectrum, Washington is doing better than all other cities with only a 1.2% decrease in home prices over the last year. Boston came in second with a 2.1% decline and Denver in third with a decrease of 2.5%. Each of these three cities experiences an increase of at least 1.6% from May to June.
What does all of this mean for investors and potential home buyers? Invest in cities that are showing positive signs of growth not only within the last month but also with the lowest decrease in home prices over the last year. Washington is doing rather well as the real estate market remains somewhat stable over the last year in this metropolitan city.
This recent report shows that growth is occurring in the real estate market and the anticipated double-dip is more than likely not going to occur. There are still great investment opportunities throughout the country in everything from bank owned properties to short sales.
In the end, home prices in many metropolitan cities are increasing over the last few months indicating growth in the real estate market. It is still a buyers’ market and the real estate arena is still ripe with investment opportunities for homebuyers and investors.
