For the first time in 5 years (since the housing crash began), nation-wide home prices rose 0.2% to a median value of $149, 300 during the second quarter of this year. The real estate website Zillow reported that this was the first time the prices rose on a year-to-year basis. When comparing the second quarter to the first, home prices rose 2.1%. The home prices are still down compared to before the housing crash in 2007 (24% down) but at the very least prices seem to be rebounding nation-wide, not just in select areas.
When looking at specific areas, the biggest gainer was Pheonix, Arizona who had a metoric 12.1% increase from last year to a median home price of $136,200. This is encouraging because Pheonix was one of the hardest hit areas of the housing crisis, along with Las Vegas and many cities in Florida.
The way Zillow.com computes the median home prices sales is that they do not factor in sale of foreclosure or bank-owned homes because they want their median index to represent homes being sold by regular homeowners. This does represent an accurate number on what homeowners can expect but it doesn’t give the complete picture as many homes are not only hold by banks but are in the process of being foreclosed. In fact after the foreclosure settlements with the big banks, the number of foreclosed homes is expected to rise. However the increase in prices should comfort homeowners for now.