Home prices continue to rise amid housing market concerns
Posted on Tuesday, May 6, 2014 at 11:22:30 AM
The past five years have been tough on the U.S. housing market, with fluctuating residential financing rates, a high number of foreclosed houses and shifting home equity, among other factors. While times have improved, both homebuyers and sellers should be prepared to weather some tough conditions in the near future.
According to CoreLogic, home prices across the country have increased 11.1 percent in March 2014 compared to the same time last year. This represents the 25th month in a row of increases, with the biggest gains reported in California, thanks to an uptick of 17.2 percent.
"Home prices continue to rise across the nation, but affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity," said Anand Nallathambi, president and CEO of CoreLogic. "In many markets - especially major metro areas like Los Angeles, Atlanta and New York - home prices are being driven up at double-digit rates fueled by a lack of inventory and record levels of cash purchases."
In addition, Warren Buffet, chairman and CEO of Berkshire Hathaway, told Forbes that financial hardships could be on the horizon, potentially impacting the U.S. economy and the housing market. This is due to a lack of information and transparency regarding major financial institutions in the U.S.