By at least one indication, the real estate market is starting to look up -- construction of new homes (as measured by housing starts) rose for the third straight month in May, by 17.2 percent. Some say this increase is a sign that the housing market is indeed beginning to bottom out.
However, the pace of new-home construction is still low, down 45.2 percent from May 2008, and home prices are likely to stay down considering the glut of homes on the market, WSJ.com notes.
But if you take a look at local markets, you will find that home sales, and in some cases, home prices, are starting to pick up. Below are three markets that are improving:
Buffalo, N.Y.
Home sales in the Buffalo Niagara region rose 3.3 percent in May from May 2008; the increase was the first yearly increase in about a year. Home prices also got a boost, with the median price rising to $110,000, up 4 percent from May 2008.
Orlando, Fla.
In April, Orlando home sales were up 38 percent from April 2008. However, the city's median price of $141,800 is 34 percent below the median price of April 2008. However, short sales and foreclosures continue to weigh down prices -- there are approximately 4,700 foreclosure listings in Orlando on Cyberhomes.
Quad Cities, Illinois and Iowa
The Quad Cities region, which includes Davenport and Bettendorf in Iowa and Rock Island, Moline and East Moline in Illinois, saw the median price for a single-family home increase 14 percent from about a year ago to just over $100,000, the second highest median price increase in the U.S. Homes here sell quickly, and usually go for 96 percent of their list price, says NPR. The area hasn't seen a large number of short sales and foreclosures. For example, a search yesterday on Cyberhomes of foreclosures in Davenport, Iowa, only turned up 89 homes.—Lauren Baier Kim