In the year of 2013, the growth of home prices has remained quite slow. It is said that the pace of slow growth would surely increase in this calendar year and supposed to improve overall home prices value.
S&P/Case-Shiller’s composite index has revealed that the prices of home in December in 2013 had been ticked down to 0.1 percent compared to previous months. Dow Jones Indices the chairman of the index committee said that “The available data clearly shows the loss of price momentum in the market”.
It is said that the prices of home in December 2013 were quite better than the 2005. But, when it comes to comparison between the last two months, its drop out figure is alarming. On the other hand, the market experts hold the opinion that “The prices will continue to lessen if the prices of inventories will tend to grow”. They claim that raising rate of inventories will motivate the people to put their houses on sell.
Besides, it is assumed that the slow growth in home rates should not be considered as bad thing. It is slowly growing and should be reckoned as a good omen. Contrary to this, CoreLogic report says the prices of home in the US had gone down to 20% from a peak of 2006 and determines that the recovery of rates will begin from Dallas and Denver.
Apart from these reports, the purchasing power in the market has decreased to largest extent and the pace of growth in the January has also remained very slow. Not only this, the rules and regulations of mortgage have also been changed for buyers and lenders and it would also affect the market to some extent. Last but not the least, there are few banks which have soft rules for the mortgage but they offer highest lending standards.