Recent indications from housing market observers and researchersshow that housing prices might have finally stabilized and turnedpositive on stronger sales.

But rising prices and home values don't necessarily translateinto a stronger demand for credit union housing finance.

Analysts point to the June report from S&P Case-Shiller Home Price Index as one indication of themarket turnaround.

“With April 2012 data, we finally saw some rising home prices,”said David Blitzer, chairman of the Index Committee at S&PIndices in the late June announcement. “On a monthly basis, 19 ofthe 20 MSAs and both Composites rose in April over March. Detroitwas the only city that saw prices fall, down 3.6%. In addition, 18of the 20 MSAs and both Composites saw better annual rates ofreturn.

“It has been a long time since we enjoyed such broad-basedgains. While one month does not make a trend, particularly duringseasonally strong buying months, the combination of rising positivemonthly index levels and improving annual returns is a goodsign.”

But analysts added that investors seeking lower-priced propertyto either rent or flip provided an important engine for the marketimprovement and since most of those investors purchase theirproperty with cash, they don't necessarily apply for mortgageloans.

However, as the amount of foreclosed and distressed property diminishes, the housing finance marketoverall, including for credit unions, should continue tostrengthen, they said.