Homes Prices Up Yet Home Sales Plunge Nationwide

(CBS)  In the most recent Standard & Poor/Case-Shiller national home price index, the figures show that home prices are up 4.4 percent in second quarter but down 27 percent since July 2006.

Across the country the arrow went up for home prices in June. Chicago was up 2.5 percent; Minneapolis, 2.5 percent; and Detroit, 2.5 percent. They led the rebound according to the Case-Shiller index. Among 20 major metropolitan areas, only Las Vegas fell, 0.6 percent, reports CBS News correspondent Anthony Mason.

Nationally house prices are up nearly seven percent from the lows in 2009 with some cities showing double digit gains. Yale University economics professor Robert Shiller says, "Notably San Francisco, which is our best performing city since 2009. It's up 21 percent. That's booming."

Ominous signs still loom for the housing market. Sales of existing homes plummeted 27 percent in July and some economists think house prices are about to fall again too.

"We're not quite through with the housing crash," says Moody's Analytics' chief economist Mark Zandi. We've got another five percent or so to go on house prices."

Because the first time homebuyers tax credit, which fueled much of the growth, has expired and foreclosures continue to mount, hundreds showed up for a workshop for distressed homeowners in West Palm Beach, Fla., this past weekend.

"And we've been here all night," says Racquel Turner.

Racquel and Robert Turner have fallen three months behind on their mortgage payments.

"Basically, I was out of a job for six months," says Robert.

Unemployment continues to feed the foreclosure crisis. "I think that we should be focused not on boosting the housing market, but focused on creating jobs," says Shiller. "And if we create jobs I think the mood of the country will change."

Meanwhile, even with mortgage rates at historic lows, the housing market remains on shaky ground.

[mb91764]

Really why do wonder about no one buying?Well,people have learn that a home is not a great place to put your money into.Remeber the bubble bust just a few years ago.I bought my home back when the prices were at a level that the average person could paid,1990.There is no way i would pay what these dumbasses are paying now. should be a mans castle,but not cost like one.We have no one to blame about the prices ,you don't have to sign that paper.If wonder i paid 40000 for a2500 square ft home and 4 acre,those were the days.Oh yea i paid it off in 15 years-2005.i feel for all you suckers that got rip off these last few years.ha,ha,ha

[askagain]

This recession and the housing bubble will be forgotten by most people once the economy improves. That is what has happened throughout our history. Most people can't even tell us how many recessions this country has experienced. Further, there will be an eventual housing shortage. A demand for housing will always be with us as long as our population expands.

[tsigili]

I don't even see anyone looking at the houses for sale, in my neighborhood.

[illcountryboy]

Sorry about the missing 's' key seems to be sticking

[illcountryboy]

Seems basic common sense and logic is at work here: Developers have produced more home at higher prices than people are willing or can buy. They raise the price and sell fewer house - how about that?

[cktirumalai]

I think people who buy a house as a place to live in generally fare better, regardless of the state of the market. Those who buy houses speculatively may either make a killing or get cleaned out. Housing is a good window into many aspects of a society. In the United States home ownership has become woven into the American Dream. There are other developed societies where ownwership is much less central.
Candadai Tirumalai