Home Prices Increase Finally!

I have been anxiously awaiting news like today's, as I have my own house for sale currently, and want to see signs of housing price stabilization as well as affordable mortgages (i.e., low interest rate home loans and mortgages) to help someone acquire my home more easily too.

CNN had this to relevant and exciting news release just a bit ago:

NEW YORK (CNNMoney.com) -- The value of U.S. homes grew on a monthly basis in May for the first time in nearly three years, according to 20-city index released Tuesday.

The month-over-month increase was 0.5%, according to the report from financial data company Standard & Poor's and economists Case-Shiller. It was the first increase in the monthly index since July 2006.

On an annual basis, home prices in the 20 cities fell 17.1%, but it was the second straight month that the year-over-year decline lessened.

We have seen quite a bit of activity lately when showing our house, and although we have only had it on the market not quite a month, we have had an offer that is pretty reasonable, and perhaps with some back-n-forth, we'll all come to an agreement shortly.

I am a bit mixed about selling my old home and moving to the new home, as the new place does not offer high-speed internet at any reasonable price (basically, it is unavailable there!) in the near term. There is talk of wireless in the County we are moving too, but that is at least a year off. And, going with a T1 from those lovely telecommunication companies costs as much on a monthly basis as it does to keep my old house! THAT is absurd, but it is what we will be forced into unless we rent an office building nearby (which we have looked at). But, on the plus side, at least if I get down to just ONE house I only have one yard to mow, one set of utilities to deal with, and less driving back and forth.

As for home-prices, I feel like we have perhaps hit the bottom, and that the "bottom" will be self-fulfilling as pending buyers start deciding to get in now before home prices start shooting up again... and by getting in, home prices will start to rise. (self fulfillment in action, just like the downward spiral in the stock market before the recent rise... it is all about the "herd" and its mentality of the moment). If I were buying (just did a month ago. heh), I'd definitely get in before interest rates on mortgages and home loans go shooting skyward. Right now, home loan rates are low (definitely by historical standards), and compared to my original 10-PLUS-PERCENT (back in 1990) loans, people today have it made!

Let's all hope that the rest of the economy and employment follows the current upward trend in home prices, home sales, and so forth. I think that if we get this housing thing stabilized, the overall economy will start to improve MUCH quicker. I took a chance, and bought while things looked the worst (to get the best price), and now I hope things stabilize so my "investment" (aka, house and all the joys of home ownership that go with it) is somewhat predictable and a bit more liquid than it otherwise may be.

Also, if I had a high-rate loan, I would surely do a mortgage refinance (to a fixed term loan) before rates start going up!