Home Prices Rise: Fluke or Sign of Recovery?

National home prices reversed their downward trend this month compared to last month as the U.S. housing market posted its first uptick in prices since mid-August 2010.

"This recent national change in price direction is encouraging for the overall housing sector, yet it is still too early to determine whether this current uptick in home prices is a temporary reprieve or the start of a sustained recovery," says Alex Villacorta, senior statistician at Clear Capital, which today released its monthly Home Data Index Market Report that provides analysis of how local markets perform compared to the national trend in home prices.

This increase in prices is especially meaningful as the first months of the year are typically affected by a seasonal slowdown in sales activity. Villacorta suggests this might be signs that buyer demand may be returning in anticipation of a potential start to a sustained recovery.

However, it is just one month of data we're talking about. When you look at quarter over quarter, and year over year, prices are still declining, albeit at a slower rate, Villacorta told AOL Real Estate.