Contacts
 




Keyword Site Search







U.S. Home Sales Rapidly Rising
Median Prices Increase In Lockstep





Existing home sales rose 8.5 percent in the second quarter, on a quarter-to-quarter basis. At the same time, supplies remain tight, so median prices of homes are climbing as well in most major metro areas. The national median home price jumped 8.2 percent, also compared to the second quarter of 2014.


Sales of existing single-family homes shot up in most major U.S. metropolitan areas in the second quarter of 2015, the National Association of Realtors reports.

A downside is that the supply of homes is tightening, and the heightened demand is driving up median prices for housing in most cities.

Total existing-home sales, including single-family dwellings and condominiums, rose 6.6 percent to 5.30 million in the second quarter, compared to the 4.97 million homes sold in the first quarter of 2015. It is 8.5 percent higher than the 4.89 million homes sold in the second quarter of 2014.

The national median price for an existing single-family home in the second quarter is $229,400, up 8.2 percent compared to the second quarter of 2014, when it was at $212,000. In the first quarter of 2015, the national median price shot up 7.1 percent, also on a year-to-year basis.

Median prices for existing single-family homes increased in 163 of 176, or 93 percent, of the metro markets the NAR tracks, compared to the second quarter in 2014. The remaining 13 metro regions, or 7 percent, had lower median prices from a year ago.

There were 2.30 million homes up for sale at the end of the second quarter. This compares to the 2.29 million homes available at the end of the same quarter in 2014.

NAR analysts have basically computed second-quarter single-family housing supply at 5.1 months -- down from 5.5 months of a year ago.

"Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand (for existing single-family homes) throughout most of the country this spring," Lawrence Yun, the NAR's chief economist, said.


"While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas," Yun added.

Compared to the first quarter of 2015, second-quarter prices rose in 85 percent of the metro markets the NAR monitors. The NAR said 34 of those regions realized gains in the double digits, a significant decline from the 51 areas with double-digit gains in the first quarter.

Rising median prices means fewer people have the financial wherewithal to buy a home.

"With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership -- especially in higher-priced markets," Yun said.

This trend is happening even though many households are realizing increased wealth.

"Inequality is growing in America, because the downward trend in the homeownership rate means these equity gains are going to fewer households," Yun added.

Regional Breakdown
Midwest: Existing-home sales jumped 13.4 percent in the second quarter, compared to the first quarter. It is 12.7 percent higher than a year ago.

The median single-family home price shot up 8.7 percent to $182,000 in the second quarter, compared to the same time frame in 2014.

Northeast: Sales jumped 10.3 percent in the second quarter, on a month-to-month basis. It is 8.6 percent above the second quarter of 2014.

The median home price was $269,300 in the second quarter, up 5.2 percent from a year earlier. South: Existing-home sales rose 1.1 percent in the second quarter, compared to the first quarter. It climbed 6.3 percent on a year-to-year basis.

The median home price was $202,900 in the second quarter, or 8.7 percent more than a year earlier. West: Sales climbed 8.1 percent in the second quarter, on a month-to-month basis. This is also up 8.1 percent from a year ago.

The median home price rose 9.6 percent to $325,200 in the second quarter, compared to the second quarter of 2014.

To read the full National Association of Realtors story, visit this web page:

http://www.realtor.org/news-releases/2015/08/home-prices-rise-in-nearly-all-metro-areas-in-second-quarter

Are skyrocketing home prices a cause for concern? The chief economist for the National Association of Realtors believes so. "Prices are rising just too fast," Yun said, "and certainly far ahead of people's income."

In June, the NAR said the national median home price for all housing types had reached $236,400, which was 6.5 percent above year-ago levels. It had also surpassed the previous record of $230,400, set in July 2006.

To read the story in its entirety, visit this web page:
http://realtormag.realtor.org/daily-news/2015/07/23/home-prices-reach-all-time-high







HTML Comment Box is loading comments...

Search Site by Story Keywords



Related Stories



September 17, 2019, 10:56 pm PDT

Website problems, report a bug.
Copyright © 2019 Landscape Communications Inc.
Privacy Policy