Answer by Heather Faires:
It’s many experts’ opions that the housing prices dropped too much when the foreclosures hit. When the market bottomed out in 2012, many investors and cash buyers took the opportunity to buy cheap without worry of the strict mortgage requirements. Homes were remodeled or improved thus causing neighborhood values to increase. (If you live next to a remodeled home, your value goes up.) In addition, low mortgage rates allow people to pay more for a house without necessarily having a high monthly payment.
On average, a 30 year mortgage is actually cheaper than it was at this time last year.
While home prices rose 10.6% in 2013, they slowed to 6.4% through October of 2014. It’s expected to slow further in the upcoming months. Surveys suggest more homeowners will sell their houses in the next year which should cause prices to drop slightly due to increased inventory.
What’s the trend of housing prices in the US in 2015?