Homes Prices Increasing
The latest reported released by the S&P/Case-Shiller national index shows that home prices have increased an average of 10.2-percent in the first quarter of this year. This excellent news indicates that the housing market may be on the brink of recovery, as the market is reporting the strongest house price gains since 2006.
The first quarter actually marked the fourth consecutive quarter for increasing real estate prices, which is a welcome relief to the U.S. economy.
These latest statistics highlight the decrease in the number of overall foreclosures nationwide, including short sales. These types of transactions are often responsible for decreasing median home price values in neighborhoods. With fewer foreclosures on the market, home values will begin to increase.
Real estate experts warn that fewer foreclosures will help the market stabilize, but the annual housing price gains will not be substantially dramatic. While 2005 and 2006 saw skyrocketing home prices peak, these prices simply could not keep up with the cost of living and inflation. Experts say that housing prices are simply beginning to return to normal once again.
New-home construction showed a decrease in April, which worried many experts. New-home construction is often cited as a substantial driver of the national Gross Domestic Product. Experts still remain optimistic about a housing recovery, but are proceeding with caution. Mortgage rates are still extremely low, which has helped homebuyers considerably during this downturned economic time. While the demand of houses on the market has increased, the supply has decreased.
Several large cities across the U.S. have reported substantial real estate increases. These cities include Phoenix at 22.5-percent, San Francisco at 22.2-percent, Las Vegas at 20.6-percent and New York at a respectable 2.6-percent.
As home prices continue to increase, many homebuyers are struggling to get their feet on the path to homeownership. Many banks have increased their loan requirements, making it extremely difficult for some potential buyers to qualify for loans. This has especially hurt homebuyers that have short sales or bankruptcies on their credit records. Fortunately, with today’s market expanding, there are a number of options for homebuyers.
My Hard Money Lenders is a direct lender that specializes in hard money lending. They offer fast loan funding, as well as interim bridge financing for investors that want to purchase one property before selling their other holdings. As a hard money lender, they offer exceptional funding options for real estate investors, including loans for apartment buildings and commercial buildings.