Home Prices Continue Their Upward Trend
The beginning of 2014 saw an increase in home prices, even though “slow recovery from the bust that led to the financial crisis continues.”
Home prices increased by 10.3 percent for the first three months of the year. Still, analysts expect that year-over-year gains are likely to be lower. The reason for that is that “current prices are being compared with months when many markets were at or near their post-bust bottoms.”
On the plus side, there are still chances for prices to go up, thanks to other factors. Among these are low mortgage rates and a decreasing number of foreclosures and short sales.
But according to Stan Humphries, Zillow’s chief economist, “we’re still several years away from a housing market driven purely by fundamentals like income growth and rising household formations.”
Housing trends continue to be mixed, as April home starts and home sales were up and mortgage interest rates were down, “but tight loan underwriting still keeps many potential homebuyers out of the market.”
Read the full article in CNN Money.