Home Prices Rising, But at Low End of Market

New York, NY, March 30, 2009--Based on  current housing market ask prices, there’s clear evidence that prices are increasing across the country so far this year, according to a story at Seeking Alpha.

An increase in list prices generally signals a strengthening market. As transacted properties establish contract prices, new properties entering the market will set their ask price based on these market-clearing contract prices, and homes already on the market will either hold steady or adjust at the local level.

However, the increase is primarily due to strong activity at the low end of the market and less activity in the remaining market segments. The website said that it's a positive step to clear out the bottom of the market, but there is certainly evidence that more homes are continuing to enter the market this year at all price levels, and will continue to do so in 2010.