Modest price gains in August

October 29, 2013

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In a recent report by Lender Processing Services, home prices continued to rise in August by a slim 0.4 percent compared to July. With interest rates remaining low and borrowers able to get a low cost mortgage, a steadying housing market has given consumers confidence to buy houses again.

While the gain is 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 country.

With the help of residential investors buying up bank owned real estate, the foreclosure rates in states such as Florida have dropped substantially. According to recent data from CoreLogic, the foreclosure rate in Miami fell 6 percent in August. Without a large inventory of repossessed properties, home values have risen and brought prices up.

Contact the Federal Savings Bank, a veteran owned bank, to discuss affordable housing options.