Home prices continue to increase
Data recorded through August 2013 suggests that Americans are now spending increased amounts on their monthly home payments, likely causing further financial stress for some individuals.
Information released today by the Standard & Poor's/Case-Shiller home price index, tracking the costs of homes in 20 different cities, rose by almost 13 percent over the year ending this August. Each of the 20 cities listed displayed year-over-year price increases. The index tracking 10 different cities, as opposed to 20, also showed significant upticks.
"The 10-City and 20-City Composites posted a 12.8 percent annual growth rate," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. "Both Composites showed their highest annual increases since February 2006. All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains."
A measure of month-over-month prices for the 20 cities rose by more than one percent in August alone. High demand and decreased supply are attributed as factors supporting the high prices.
Ellen Haberle, an economist with the national real estate brokerage Redfin, told Fox News that prices have been driven higher simply because there aren't enough homes available on the market. Also speaking to Fox News, Contingent Macro Advisors economists Maninder Sibia and Steven Wood stated that current housing inventory was only at 83 percent of its normal levels.
However, average home prices remain to be significantly below the peak prices recorded during the pre-recession years, such as in 2006. The peak-to-current decline for both the 10 city and 20 city index is approximately 20 percent.
"The monthly percentage changes for the 20-City composite show the peak rate of gain in home prices was last April," said Blitzer. "Since then home prices continued to rise, but at a slower pace each month. This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts."
Help cover higher home payments with the aid of an installment loan
Individuals in certain states can receive installment loans from the alternative lenders at CASH 1 to help them to cover unusually high home prices. For example, with an Arizona personal loan, a person could receive up to $50,000 by using their automobile title as collateral. Applications are easy to complete - you may even find yourself driving away in the automobile itself, with your cash in hand, in a matter of moments.