Is This a Picture of a Housing Recovery in Full Swing?

The housing market has been pegged by economists as a bright spot in the U.S. economy and an important driver of growth. To give this assertion credence, the housing recovery became reality in 2012; Standard & Poor’s Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed in Tuesday’s reading that that all three headline composites ended the year with strong gains.

For the entire year, the national composite reported an increase of 7.3 percent, while the 10- and 20-City Composites moved into positive territory and posted annual gains of 5.9 percent and 6.8 percent, respectively.

Breaking down this data further gives additional proof that the housing market is on the upswing; in the last three quarters of 2012, home prices made consecutive year-over-year gains. Before the market began to improve, only two quarters in the previous five years showed improved pricing, with the upturn coming about as a result of the temporary home buyer’s credit that expired in 2010…