Almost 60% of the Nation saw a rise in home prices over the first quarter of 2010, showing signs of stabilization in the housing market, according to the National Association of Realtors (NAR). Many economists believe that it was the Government Programs that aided in boosting the sales, however now that those programs have expired the second quarter is yet to be determined.
Analysts are claiming that the real estate market will see a "double dip" in home prices and that the home prices will start to decline again due to the amount of foreclosed and distressed homes that are flooding the market. A surge in high dollar homes is starting to creep into the inventory now that mid to low end homes have begun to stabilize. Although homes priced over $1 million only make up just over 1% of the market, many of them have found themselves somewhere in the foreclosure process.
However, NAR projects that the home prices will begin to increase slowly in the second half of 2010, according to Walter Molony, spokesperson for the NAR, as long as the economy doesn't take a "turn for the worse."
