There’s no sign of slowing demand for homes across the US but with tight supply, prices continue to rise
There’s no sign of slowing demand for homes across the US but with tight supply, prices continue to rise.
The latest data from the National Association of Realtors shows that metro home prices were up 6.9% in the first three months of 2017 compared to a year earlier.
The national median existing single-family home cost $232,100 in the first quarter and the annual gain was the fastest pace of increase since the second quarter of 2015.
The gains were widespread too with 85% of surveyed metros showing higher sales prices with 14% recording declining prices.
“Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” said NAR chief economist Lawrence Yun. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in almost two years.”
Affordability was pressured by rising mortgage rates and home prices, despite a rise in wages, however this was only a slight change from a year earlier.
Sales of existing homes were up 1.4% nationally in the first quarter compared to the fourth quarter of 2016, to a seasonally-adjusted annual rate of 5.62 million single-family homes and condos. Year-over-year, sales were up 5%.
Regionally, the Northeast saw sales drop 2.2% from the last quarter of 2016 but an increase of 4.2% year-over-year. The median existing single-family home price in the Northeast was $255,000 in the first quarter, up 2.2 percent from a year ago.
For the Midwest, sales were down 4.3% quarter-to-quarter but up 1.6% from a year earlier. The median price was up 5.7% to $176,600 year-over-year.
The South saw a 5.8% jump in sales in the first quarter from both the previous quarter and from Q1 2016. The median price was up 8.8% to $209,000 year-over-year.
The West saw a rise of 1.6% quarter-over-quarter and 7.4% year-over-year with the median price up 8.4% in the year to $342,500.
The latest data from the National Association of Realtors shows that metro home prices were up 6.9% in the first three months of 2017 compared to a year earlier.
The national median existing single-family home cost $232,100 in the first quarter and the annual gain was the fastest pace of increase since the second quarter of 2015.
The gains were widespread too with 85% of surveyed metros showing higher sales prices with 14% recording declining prices.
“Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” said NAR chief economist Lawrence Yun. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in almost two years.”
Affordability was pressured by rising mortgage rates and home prices, despite a rise in wages, however this was only a slight change from a year earlier.
Sales of existing homes were up 1.4% nationally in the first quarter compared to the fourth quarter of 2016, to a seasonally-adjusted annual rate of 5.62 million single-family homes and condos. Year-over-year, sales were up 5%.
Regionally, the Northeast saw sales drop 2.2% from the last quarter of 2016 but an increase of 4.2% year-over-year. The median existing single-family home price in the Northeast was $255,000 in the first quarter, up 2.2 percent from a year ago.
For the Midwest, sales were down 4.3% quarter-to-quarter but up 1.6% from a year earlier. The median price was up 5.7% to $176,600 year-over-year.
The South saw a 5.8% jump in sales in the first quarter from both the previous quarter and from Q1 2016. The median price was up 8.8% to $209,000 year-over-year.
The West saw a rise of 1.6% quarter-over-quarter and 7.4% year-over-year with the median price up 8.4% in the year to $342,500.
