Overall property prices rose 1.7% in the first quarter of 2009, according to the July Home Data Index from Clear Capital.
Some parts of the country showed a strong surge with the Midwest leading the way with a price increase of 5.3%. In the South property prices climbed 2% from the previous quarter.
'We are encouraged to see the first quarterly national appreciation in three years. Foreclosure moratoriums, first time home buyer incentives, and investment activity have contributed to this springtime appreciation of home price trends,' said Clear Capital president Kevin Marshall.
Three cities in Ohio posted the largest gains with prices in Cleveland rising 19.6%, up 15.6% in Columbus and Cincinnati prices climbing 12.9%. But some areas continued to record price falls, most notably Las Vegas where prices fell 12.4% and Orlando where they were down 9.3%.
But even in areas where there has been property price meltdown like some parts of Florida there are signs of hope. For example the Miami MSA market has seen a price decline of 38% for the year but the speed of its fall is beginning to slow, according to Clear Capital's report.
Other figures support sings of improvement. In California, which has also been one of the worst hit states, things are turning around after a two year downturn, according to a survey by the California Association of Realtors.
Residential property sales have increased 27% through the end of 2008 and beginning of 2009, spurred by low prices, mortgage rates and a belief that rates will increase in the near future, it said.
Lower prices are cited by 68% of the survey's respondents as being the main reason for confidence while 39% said low interest rates put them in the market for a new home. An additional 23% said that the belief that mortgage rates will increase in the near future is the motivating factor in their decision to buy a home.
'With many homes available on the market at more affordable prices in the past year, home buyers have been devoting more time to considering and carefully selecting their home during the researching and buying process,' said chief economist Leslie Appleton-Young.
