Home Prices Increase

According to the S&P/Case-Shiller national index, home prices increased 10.2-percent in the first quarter of 2013. This is excellent news for the housing recovery, as it is the strongest gain in prices since 2006.

In fact, the first quarter marked the fourth consecutive quarter where real estate prices have actually increased, which is positive for a real estate market that has been fledging for the least several years.

These statistics are partially due to the decrease in the number of foreclosures in the market, as short sales and foreclosures generally decrease the median home price values. With less foreclosures selling at substantially less than current market values, less foreclosures means a boost to home values across the U.S.

Experts also warn homeowners that while foreclosure sales will eventually stabilize, this will in turn make the annual house price gains far less dramatic. While 2005 and 2006 saw home prices peak to levels that could not keep up with the cost of living index, experts say that home values are beginning to return to normal. The housing bust in 2006 has simply helped return home values to standard.

However, some experts are concerned about the new-home construction pace, which showed a decrease in April. New-home construction is a substantial driver of the Gross Domestic Product. This has caused many experts to remain optimistic, but proceeding with caution. With mortgage rates still very low, this has helped make home buying more affordable. Additionally, the demand for houses in the market has increased, while the number of houses on the market has decreased.

Several big cities have reported real estate increases, including San Francisco at 22.2-percent, Phoenix at 22.5-percent, Las Vegas at 20.6-percent and New York at a mere 2.6-percent.

With home prices increasing, many homebuyers are looking to get their foot into homeownership. While many banks have increased their stringent application and funding requirements, this has left many potential buyers out in the cold. This has especially hurt buyers who have previous bankruptcies or short sales on their credit histories. Fortunately, there are a number of other funding loan options available.

Better Than Loans is a hard money lender that offers fast loan funding. They can also provide bridge funding for interim home ownership. For example, when someone wants to purchase one property before selling a property with equity, a bridge loan would offer ideal monetary funding.  As a direct lender they also offer convenient funding options for investors, such as apartment building loans and commercial building loans.