The Case-Shiller home price index released this morning showed that home prices in the largest 10 and 20 city composites rose 2.2% month over month into May. This was a widely expected rise in prices.
I have discussed in detail recently how home prices will continue to show an artificial bump in prices over the next 6 to 12 months due to two main factors:
1. Interest rates and lending standards being held artificially low and loose due to government financing and the coming anticipation of additional mortgages purchased by the Fed
2. Shadow inventory continuing to be held off the market creating an artificial shortage of inventory
Unfortunately, buyers of homes cannot "trade" the investment like a stock or bond and sell with the stroke of a computer key. They must put the home on the market and pay a realtor 6% for the service of selling a home. If you think you can make your purchase and get out before interest rates rise and shadow inventory hits the markets then I would go for it. I personally prefer not to play on train tracks.
For much more on these this topic please see:
US Housing: Visible, Shadow, & Ghost Supply
US Real Estate: Where Is The Inventory?
h/t Calculated Risk