When the housing market started taking a downward spiral in 2007, many were wondering if the market would ever rebound. New data from CoreLogic's June Home Price Index indicates that home prices are actually on the rise in Bay County.

Home prices in Panama City, Lynn Haven, and Panama City Beach rose by 3.1 percent in June of this year compared to June of last year. Bay County is ahead of the national rise of 2.5 percent for the month of June.

Although this marks the end of the downward trend, real estate experts emphasize the market has a long way to go.

Realtors have noticed an increase in the amount of interest from buyers and how long certain homes are staying on the market.

"All the houses that we see that are out there if they're priced correctly and they're in good shape, the buyers are actively pursuing them and the banks are lending to them. The Housing Affordability Index is at its greatest point. The prices are low. The interest rates are low. It's just a great time to buy," says Prudential Realtor Laird Hitchcock.

Although Florida home prices are on the rise, states in the west such as California, Nevada, and Arizona are seeing even more price increase.