The Zillow Home Value Index rose for the third straight month, rising 0.5% from April to May.
Increased foreclosure activity and issues with negative equity could still impact the direction the index is going.
Many homeowners are keeping their homes off the market because the either don't want to sell, or can't sell with prices as low as they are. That is constraining the inventory of homes available to buyers. Foreclosure activity is an even bigger wild card, with signs that banks are increasing foreclosure activity after the settlement announced earlier this year.
Hold on, it looks like a bumpy ride!