For the first time since March 2010, data from Lender Processing Services (LPS) showed an increase in home prices, but still, the analytics company warned to embrace the positive news with some caution.
Nationally, February 2012 seasonally-adjusted prices rose 0.2 percent, according to the LPS Home Price Index, which incorporated residential sales concluded during February. Not only is the increase a first in almost two years, but it’s also the third increase in five years.
“Reasons for caution are clear, as we’ve been here before. Non-seasonally adjusted prices increased for a few months in early 2009, 2010 and 2011 – trends that all ended by summer, after which all the gains – and then some – were lost,” said Raj Dosaj, VP of LPS Applied Analytics.
Dosaj also added that as seen this month, the previous temporary increases were on low sales volumes – about 30 percent lower than at any point since 1998 and inventory of distressed homes is still high, which will continue to drag on prices.
For March, LPS is predicting a 0.3 percent increase in home prices…
Read more of DSNews.com’s article here: “LPS: Home Prices Increased, but We’ve Been Down This Road Before”.