July marked the third month in a row that home prices have shown an incline on a monthly comparison, according to the Standard & Poor's/Case-Shiller home price index. In a yearly comparison, the home prices are still down 13.3% from 2008 and 33% from 2006, however the slight rise in July can be seen as a positive sign of economic recovery in the housing industry.

According to David M. Blitzer, the committee chairman for the Case-Shiller index, "We do need to be cautious in coming months to assess whether the housing market will weather the expiration of the federal first-time buyer's tax credit in November, anticipated higher unemployment rates and a possible increase in foreclosures."

The first time homebuyer tax credit has allowed new homebuyers to receive a 10% tax credit off the purchase of the home up to $8,000; however the program expires on November 31, 2009.