According to an article by Bloomberg, housing prices have been rising. The article says that this is because there are less foreclosures to buy and a lower number of homes up for sale. However the article also says that some of the areas are overvalued. So not all of the gains in price made recently are the truth. The median price for a single family home rose 12.5% to $207,300 nationwide. The highest gained percentages were in Sacramento, California, Punta Gorda, Florida and Las Vegas. The article stated that rising home costs and the difficulty to get financing for a home was holding buyers back. there are currently more buyers than sellers in the real estate market. The most affordable homes were found to be in Toledo, Ohio.
Rising home costs means that the cost of living will increase. The article mentioned that buyers are having a hard time finding loans. That could also be linked to the higher interest rates in my opinion. It's not good that some of the houses are overvalued. If the prices continue to rise, they will create a bubble that will eventually burst. That would be bad for the home market as well as the local economy. Hopefully, financing for homes will become easier to secure in the near future. (But not too lax, we don't want a repeat of the housing crash.)
http://www.bloomberg.com/news/2013-11-06/home-prices-climb-in-88-of-u-s-cities-as-recovery-spreads.html
Many buyers can't find loans because they are being stricter about who they give them to. Interest rates are very low right now. It isn't that hard to pay them off, they are just being more careful about who they lend to.
ReplyDeleteIf you read Gabe's blog you'll notice that there are now programs being instilled that are beginning to allow people to buy homes more easily. This is thoroughly stimulating the housing market and ultimately the entire economy. This article may have been written before the other one, but Gabe's is an updated version and it tells of all the positives regarding the housing market and how it is adding to economic gains.
ReplyDeleteJust as Lindsay said, Gabe has an updated version of this article. Loans are becoming much more leniant making it easier to buy a home. Right now is actually a great time to purchase a home due to such low interest rates as will stated.
ReplyDeleteThe housing market is in full swing according to other articles I've seen. This one just seems to focus on the negative aspects of it. Also, even though some areas have a higher standard of living and house costs those same areas also tend to have higher paying jobs. It tends to balance out.
ReplyDeleteWell, it certainly is good to hear that there are more buyers than sellers in the real estate market. Perhaps once these buyers are able to secure loans through the programs mentioned in Gabe's article, the market will rebound as these new buyers are able to purchase homes.
ReplyDeleteI believe that the house market is growing but I think it still needs help. It is though good to here that there are a lot of buyers, and I feel like the sellers is low because the house market has been so bad for so long.
ReplyDeleteYes, my blog has some updated statistics. Luckily, the housing market is doing great compared to where it was 3 or 4 years ago. It still isn't in tip-top shape, but it is all relatively good.
ReplyDeleteLoans are much more common which makes it easier to buy a home. Now is the best time to buy a house because of low interest rates.
ReplyDeleteThe banks are being tougher on people because they lost so much money to people who actually obtained sub-prime mortgages. They do not want that to happen again.
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