Home prices up two months in a row as buying season begins

Home prices rose for the second straight month, but thanks in large part to the seasonal pickup in home purchases, according to a leading index.

The Standard & Poor's/Case-Shiller Home Price Index, released Tuesday, found that home prices were up about 1 percent in cities nationwide in May, as demand for housing picked up during the warmer months.

"We see some seasonal improvements with May's data," said David M. Blitzer, chairman of the index committee at S&P Indices. "This is a seasonal period of stronger demand for houses, so monthly prices increases are to be expected."

However, Blitzer maintained that other data indicates banks are tightening their lending standards and home prices are still down across the board for the year, painting a " 'bounce-along-the-bottom' scenario" in the housing market.

"We have a long way to go before we see a real recovery," he said.

On average, home prices in cities across the country are down about 4.5 percent from where they stood one year ago.

He identified Washington, D.C., as the "lone beacon of hope" for home prices, as it was the only metro area tracked to see home prices climb over the last 12 months. Homes there are up 1.3 percent over the last year, and climbed 2.4 percent from April to May.

Of the 20 cities tracked by the index, all but three were up in May, as Tampa, Las Vegas and Detroit continue to see home prices fall. Prices in Phoenix neither rose nor fell in that time.

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