Home prices rose 2.9 percent in the second quarter from the previous quarter. This is the first such gain in three years and an additional sign that the housing market is slowly stabilizing. The recent results of the S&P/Case Shiller index, which measures repeat home sales, are showing the same positive trends reflected in other housing market indicators. Home sales, construction activity and builder confidence have all risen in recent months. Overall, prices fell 14.9 percent in the second quarter compared with the same time period a year ago. This quarter, average home prices are near historic 2003 levels.

The S&P/Case Shiller system measures national home prices in various time ranges in all nine U.S. Census divisions. The report includes a 20-city index and a 10-city index. Offered on a monthly basis, from May to June, prices were up 1.4 percent in both indices. Putting pressure on prices nationally is the abundance of homes flooding the market and the number of foreclosures and other distressed properties, which are dragging down home prices. These are positive signs and a good reason to buy a home Eugene if your are in the market for one.