Chicago, IL (PRWEB) October 30, 2013
In a recent report by Lender Processing Services on October 28th, home prices showed a continued rise in August by a slim 0.4 percent compared to July. The Federal Savings bank finds that with interest rates remaining low and borrowers able to get a low cost mortgage, a steadying housing market is instilling confidence to consumers again to buy a home.
While the percentage gain may seem minimal, the growth is a promising sign for the housing market recovery. Most real estate sales take place during spring and summer months before winding down in the fall. In year-over-year gains, home prices have increased 9.0 percent since August 2012.
The state with the largest growth in August since the previous month was Nevada, with a 1.4 percent rise. Florida and Michigan both saw improved markets with 1 percent increases in home prices. Despite rising slowly, these states were some of the hardest hit markets during the recession, and their recovery is good news for the country.
With the help of residential investors buying up bank owned real estate, the foreclosure rates in states such as Florida have dropped substantially. The foreclosure rate in Miami fell 6 percent in August according to CoreLogic’s National Foreclosure Report. Without a large inventory of repossessed properties, home values have risen and brought prices up.
“We are seeing an ever improving real estate market which is attracting first-time homebuyers by the positive price trend and appealing interest rates,” says Nick, a banker at The Federal Savings Bank. He continues, “If we want the housing market to continue its recovery we will need the assistance of these first-time homebuyers rather than investors. We encourage our prospective applicants to get pre-approved for a mortgage now, and get one step closer to buying a home so that they at least have the option of buying a home now.”
Contact the Federal Savings Bank, a veteran owned bank, to discuss affordable housing options.