Two housing reports have brought positive news. According to a 20-city index released Tuesday from financial data company Standard & Poor’s and economists Case-Shiller, the value of U.S. homes grew on a monthly basis in May for the first time in nearly three years. The month-over-month increase was 0.5% according to the report. This was the first increase in the monthly index since July 2006. To read the full story, click here. 

In addition, a report released by the U.S. Department of Housing and Urban Development showed sales of newly constructed single-family homes rose 11% in June to an annualized rate of 384,000 homes. Click here to read more.  

Granted, one month does not set the benchmark for housing prices that have declined since July of 2006. But it is worth paying attention to this statistic in the months to come to see if a trend is taking place. If so, this could indicate that prices are finally stabilizing. This May statistic, coupled with the 11% June increase in new construction, could, in part, be the effect of the government’s recent efforts to support the housing market, particularly with the $10,000 credit for new home purchases.   

What does it all mean? The housing market is an integral piece to our economy. All eyes will be on these numbers in the months to come to see if, indeed, the housing market will be the piece of the puzzle with the most "green shoots".


Posted by:Noreen Smith