case-Shiller reports Home Prices Rise

Home prices rise - Case-Shiller

The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1 percent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 percent from August a year ago, the annual declines have slowed since February. It shows a widespread turnaround with prices rising month-over-month in 15 metro areas since June. "If the increases are consistent across the markets, this is key," said Susan Wachter, Wharton School real estate professor, before the index was released. "Then we're seeing the formation of a bottom." However, rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales. The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.