Housing prices continue to rise, market not yet in the clear

With home prices – including distressed sales – increasing through October 2012, it was the eighth consecutive month of yearly gains, according to data released by CoreLogic. The 6.3 percent increase of year-over-year sales was the biggest since June 2006.

As the market continues to recover, more Americans could decide that it's a better time to invest in their own property. Lenders need to ensure that they have personal loan software in place that can handle a possible influx of borrowers. That, paired with an amortization calculator, will keep monthly payment plans well-within a homeowners financial abilities.

"The housing recovery that started earlier in 2012 continues to gain momentum," Mark Fleming, chief economist for CoreLogic, said in a release. "The recovery is geographically broad-based with almost all markets experiencing some appreciation."

Fleming added that sand and energy states are experiencing the most robust growth, and even some judicial foreclosure states are recording increasing prices.

Even with the positive news of home prices rising, a tax hike has the ability to stall housing appreciation, according to analytics firm Clear Capital.

Specifically, higher taxes could stall home price gains if potential homebuyers are forced to rent because of tightened personal budgets.

Alex Villacorta, director of research and analytics at Clear Capital, told HousingWire that short term gains have built up enough momentum to possibly carry the market through the slower winter months. Essentially, he said, the housing industry is in growth mode, but likely with a less intense pace in November.

Until the economy is completely recovered, Americans might remain uncertain of their financial situation. As such, using an amortization schedule for loans will keep required monthly payments at acceptable levels for both lenders and borrowers.