Home Prices Continue To Rise In Most Metros

The National Association of Realtors’ latest quarterly report found home prices up in 83 percent of the 178 metropolitan areas included in the study. In addition, the national median existing single-family home price was 4.9 percent higher in the second quarter than it was the year before. But though that’s seemingly bad news for buyers, it is an improvement over the first three months of 2016, when 87 percent of metros saw increasing prices and the median price was up 6.1 percent. Lawrence Yun, NAR’s chief economist, says buyers are active in the market but – since there are too few homes available for sale – prices are moving upward. “Steadily improving local job markets and mortgage rates teetering close to all-time lows brought buyers out in force in many large and middle-tier cities,” Yun said. “However, with homebuilding activity still failing to keep up with demand and not enough current homeowners putting their homes up for sale, prices continued their strong ascent – and in many markets at a rate well above income growth.” Because there are fewer houses available for sale, 40 percent of listings sold at or above their list price. In fact, June set a record for the highest share of houses selling above list price. More here.

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