According to a recent article in business week online, home prices in 20 U.S. cities unexpectedly rose in January, indicating the housing market is stabilizing as the economy expands. The article mentions that the S&P/Case-Shiller home-price index climbed 0.3 percent from the prior month on a seasonally adjusted basis, matching the gain in December, the group said today in New York. The gauge was down 0.7 percent from January 2009, the smallest year- over-year decrease in three years.
The probable causes for the increase ...??
- Cheaper homes
- low borrowing costs
- government incentives
Gains in hiring are the best bet to overcome mounting foreclosures that keep the pressure on prices and pose a threat of renewed declines in real estate.
Growth in new home sales will definitely help companies like PrivoCorp which help close mortgage loans as contract processors. PrivoCorp specializes in the contract processing of FHA loans across the country.
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