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In December, home prices have increased in 20 cities for the seventh month straight.

Figures from the S&P Case Shiller home price index showed home prices have increased 0.3 percent from November.

Homes are becoming more affordable because of low property values, increasing incomes and government programs. There are still threats against the housing market’s recovery such as the high amount of foreclosures, high unemployment rate and an end to the Federal Reserves program.

“It’s reassuring that we’re seeing stabilization and outright increases in home prices,” said Michael Feroli, an economist at JPMorgan Chase & Co., who accurately forecast the adjusted month-over-month gain. He said he expects prices to be “flat” in coming months.

Economists predict in the 12 months to December home prices would drop 3.1 percent.  Economist also predict there would be a 0.1 percent seasonally adjusted increase in December from a month earlier.

After the housing report was released the Standard & Poor’s 500 index, which expires in March dropped 0.4 percent to 1,103.1.14 of the 20 cities reported have shown an increase. 5 cities of the 20 had a decline in home prices. Los Angeles had the biggest month-to- month gain of 1.4 percent.

Economists predict the foreclosure rate and the unemployment rate will reach 9.5 percent by the end of the year. Economists also predict foreclosure will reach 3 million by the end of the year. According to RealtyTrac low home prices and the high unemployment rate are leaving homeowners unable to sell or make mortgage payments. In 2009 there were 2.82 million foreclosures.

President Barack Obama, extended the homebuyer tax credit in November. The tax credit is set to expire April 30.

The Feds program to keep interest rates low will expire on March 31^st.

“We expect our September quarter will be the most challenging as a tax credit support for home sales will have expired,” Donald J. Tomnitz, president and chief executive officer, said during a Feb. 2 conference call.