The effect of the economy on the real estate market has been talked about frequently over the last couple of years. As with everything else, the downturned economy meant that builders stopped building and houses stopped selling. There is, however, good news for homeowners that were concerned about the value of their home. Research shows residential real estate prices up for 17 consecutive months. According to Property Wire, the latest index shows that the national median home value was up 6% from a year ago.

March of 2012 was considered to be the bottom of the housing crisis. Since then, house prices have risen 23%. While this is still 26% from the peak prices seen in 2006, it gives everyone is the housing industry hope for a complete recovery. A large portion of the increase is due to cash buyers and investors. With foreclosures and short sales still on the market, interested buyers have begun to dwindle the supply again. More confidence in the economy has encouraged homeowners to sell, buy, and build again.

Portland is an area that has seen a tremendous increase in home values. Values peaked in April with a 12% increase over a year earlier. Analysts speculated that the area couldn't continue such rapid growth over the long term, and the rates have started to slow. Increased interest rates are blamed for a portion of the slowdown. Also considered at fault are state laws that affected the foreclosure process. Those legal challenges have now been worked through and the Portland real estate market is continuing to heal and return to normal.

With the news that residential real estate prices up for 17 consecutive months and the knowledge that the Portland area is seeing a slowdown in the rise of home value, these are signals that now is a great time to invest in real estate.