Real estate prices are on the rise (NBC News)

NBC News
(8/14/2013 11:27 PM, WWLP-TV)

New national numbers show that homes are getting more expensive.

The local housing market is following a national trend of higher interest rates and median home prices, but not to the extent of the rest of the country.

After the recession of 2007, the U.S. Federal Reserve slashed the interest rates on mortgages. Their goal was to stabilize the housing market and increase consumer confidence.

In June of this year, Federal Reserve Chairman Ben Bernanke announced that the economy is strong enough to survive without a stimulus program, and interest rates are climbing.

"I think what happened with people is they think that when interest rates go up. They think I better hurry up and buy a home or refinance," said Shira McCormick of Wilbraham.

Nationally, the median price for a home is increasing, but in the Pioneer Valley, the increase is much more gradual.

Real estate experts told 22News that the Pioneer Valley is still a place where you can get a great home for an affordable price.

"The affordability is still good for the Pioneer Valley. It’s still a good time to buy. The key is we still have homes that are affordable and we still have interest rates that are good," said Brian Sears, the President of the Realtors Association of the Pioneer Valley.

Sears told 22News that a gradual increase in home prices is a sign of a strong market. "Sustainable appreciation which allows people to gain wealth by building equity in their home but at the same time keeping it affordable so that the first time home buyer can buy a home."

Numbers from the National Association of Home Builders show that 69% of homes for sale were affordable to a family making just under $65,000.

It’s the first time that number has fallen below 70% since 2008.