With home prices continuing to rise, easing lending standards appears to be the quickest solution, notes a Sterne Agee analyst.
Lindsey M. Piegza, Chief Economist at Sterne Agee in the ‘Economic Insight’ report dated April 25, 2014, points out heightened costs have dampened sales, as many home shoppers are simply priced out of the market.
Climbing home prices
The Sterne Agee economist points out that housing prices are once again rising quickly. Citing the S&P/Case-Shiller composite index of 20 metropolitan areas, she points out home prices rose 0.8% in January while they rose a whopping 13.2% over the past 12 months. The following graph captures the rising trend in the home prices:
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