The housing market is showing more signs of recovery according to recent reports. This publication reports that home prices hit their highest point in seven years, increasing more than 12.2% in May over the same month in 2012. The jump was the biggest one in more than seven years, suggesting that the housing market bubble may have finally burst.

CoreLogic, a provider of real estate data, reported that home prices increased in 48 states in May. The only states to see a decline in home prices were Alabama and Delaware. In addition, 97 out of the top 100 cities in America also reported an increase in home prices.

Western states showed substantial gains when compared to the rest of the nation. The state with the highest gains was Nevada, which saw a 26 percent increase. California followed with a 20.2 percent increase; Arizona, 16.9 percent; Hawaii, 16.1 percent; and Oregon, 15.5 percent.

May 2013 was also the 15th consecutive month in which home values improved. The increase between April and May amounted to a 2.6 percent increase. Even so, home prices are still around 20% lower than they were at their peak in April 2006.

The increase in home prices is largely due to the fact that there have been more buyers in recent months.  Encouraged by unusually low interest rates, many people have decided not to put off purchasing real estate any longer.  That fact, coupled with a fewer number of foreclosures on the market, has caused home prices to increase again.

Not only are more houses selling, but fewer of them fall into the category of “distressed homes” than in the recent past.  Distressed homes are those that have previously been affected by foreclosure or a short sale, which involves selling a home for less than the amount owed on a mortgage. This is good news for consumers who might have concerns about purchasing a home, but did not want to contend with the potential problems a distressed property might bring.

Over the next few months, experts anticipate another increase in home sales, since a record number of real estate purchase contracts were signed in June. Now is an excellent time to invest in real estate, so those who have been putting it off may want to go ahead and contact The Rob Levy Team and jump on this opportunity.