Home Price Bottom or Bubble?
By Diana Olick, CNBC Real Estate Reporter
NEW YORK (CNBC) -- Home prices rose, just barely, in the second quarter of this year annually for the first time since 2007, according to online real estate firm Zillow. That prompted the popular site to call a "bottom" to home prices nationally. The increase was a mere 0.2%, but in today's touch and go housing recovery, that was enough.
Nearly one third of the 167 markets Zillow tracks in this survey saw annual price gains from a year ago.
"After four months with rising home values and increasingly positive forecast data, it seems clear that the country has hit a bottom in home values," said Zillow Chief Economist Dr. Stan Humphries. "The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own."Zillow's report, which compares prices of homes sold in the same neighborhood, also showed a stronger 2.1% gain quarter to quarter, which is the biggest uptick since 2005. The biggest price gains, however, are in the markets that saw the biggest price drops during the latest housing crash. Phoenix, for example, saw a 12% annual price gain on the Zillow index.
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