U.S. home prices rose by 1.6% from June to July, according to The Standard & Poor’s Case-Shiller Home Price Index, which tracks the value of residential real estate in 20 metropolitan regions across the United States. Prices increased in 18 out of 20 of the cities tracked by the Index, one more than in June. This is the third straight monthly increase, indicating a sign of stabilization in the real estate market.
Many believe that the $8,000 first-time home-buyer tax credit that was part of February’s stimulus package has contributed to these gains. Currently, the tax credit is scheduled to expire on November 30, 2009. If it is not renewed, market prices will likely decrease.
Experts, however, urge caution when praising the three-month gain. Some analysts are concerned that there could be more foreclosures on the horizon and fewer home purchases, given the uncertainty of the reauthorization of the first-time home-buyer tax credit and the reported decrease in the Conference Board’s consumer confidence index, which decreased to 53.1 in September from the 54.5 reading in August. And, home prices are still 13.3% lower than this time last year.
As we discussed earlier this year, real estate appraisal fraud is more of a threat in times of economic uncertainty so it is important for potential home buyers, owners, CPAs, and attorneys, faced with the challenge of accurately appraising real estate assets, to find appraisers who have experience in their specific regions.
