Moderate home price gains could be good news for buyers
Posted on Tuesday, July 22, 2014 at 9:51:04 AM
For those on the lookout for low residential financing rates and affordable real estate, rising home prices can be a legitimate obstacle. However, there is good news - the Federal Housing Finance Agency reported that the rate of price gains are on the way down.
According to the FHFA, home prices only increased by 0.4 percent on a seasonally adjusted level from April to May. On a yearly basis, prices ticked up 5.5 percent nationwide. The current U.S. FHFA House Price Index remains 6.5 percent below peak levels last felt in April 2007, and instead are more similar to the July 2005 reading.
"The current conditions are more encouraging for buyers," Stephanie Karol, U.S. economist for Massachusetts-based IHS Global Insight, said in a telephone interview with Bloomberg. "As price gains moderate and wage growth and employment growth pick up, buyers will be in a better position to make a purchase."
In addition, Bloomberg economists forecasted a 0.2 percent increase, slightly below the actual figures released by the FHFA.
Even so, these slower price gains could help people both list their properties and buy new ones, a plus for all those involved in the real estate market.