In July, the value for a U.S home increased 0.3 percent which is less than analysts' predicted.

According to the Federal Housing finance Agency, the house price index dropped 4.2 percent for the 12 months ended in July.

"The general economic recovery is weak for one reason: because the housing recovery is weak," said David Crowe, chief economist of the National Association of Home Builders in Washington.

After a three year slump the U.S housing market is struggling to stabilize. Since the unemployment rate is at a 26 year high not many people took advantage of the government's first time buyer credit.

Since the recession more than 7 million jobs have been lost. President Obama and Federal Reserve Chairman Ben S. Bernanke are thinking about whether to end support for the housing market.

On September 17 Timothy Geithner reported the signs of stabilization in the housing market are "very encouraging" and the Obama administration is studying whether to let the tax credit expire at the end of November.

"If we start to see a major fallback in housing they're going to have to bring back more federal support," said Brian Bethune, chief financial economist of IHS Global Insight, a forecasting company in Lexington, Massachusetts.

According to the FHFA eight out of nine areas saw prices decline from a year earlier. In Nevada and Arizona is where the biggest decline occurred.

From June to July home prices increased in California, New York, New Jersey and Pennsylvania.

According to Lennar Corp homebuilding companies are beginning to see some improvements.