Home Prices Are Up. Is This the End of the Decline in Home Prices?

Home prices were up 0.9 percent on a seasonally adjusted basis from April 2009 to May 2009. The fifth straight increase in the price of homes according to the Federal Housing Finance Agency's Home Price Index.

The home price increases are a result of the low mortgage rates we have seen this year, the first time home buyer tax credit and homes have become a lot more affordable than they have in recent memory.

Home prices have declined so much the past few years making them affordable again.

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The Pacific region of the country which includes, Hawaii, Alaska, Washington, Oregon, California had the biggest house prices increase of 2.7 percent on an annualized basis.

While the New England region which includes Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut had the largest decline in home prices, on an annualized basis prices declined 2.0 percent.

Other regions enjoying a rebound include the East North Central region which includes Michigan, Wisconsin, Illinois, Indiana and Ohio. Home prices increased 1.5 percent on an annualized basis.

The South Atlantic region which includes Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida had an increase of 1.4 percent on an annualized basis.

The monthly FHFA index is calculated using purchase prices of homes that have mortgages sold to or guaranteed by Freddie Mac or Fannie Mae