Home Prices Rise for 5th Straight Month

Home prices rose again but in only 11 of the 20 regions tracked by the Standard & Poor’s/Case-Shiller home price index. The index is off of it’s lows from May of this year but is still well below it’s all-time highs in April 2006. On Monday it was reported that consumer confidence has continued it’s climb. That’s important because spending, which is the main driver of the U.S. Economy, tends to increase as the consumer feels more confident.

The problem however is that most experts seem to think a double-dip price drop will occur. And they do have valid reasons: foreclosures will increase and sales will decrease after government intervention wanes. But if the economy is able to right itself shortly after the first quarter 2010 (not very likely) the tax credit could be offset by a decreased un-employment rate. If jobs are more readily available the rate of foreclosures could slow down. Nevertheless, there are still many homeowners that would still be in trouble even if they found a new job today. They might still need to go the route of a short sale or foreclosure to save themselves from an ”insurmountable” debt.

-@TheRELedger