Home prices in the U.S. rose in nearly all metro areas in the second quarter amid short supply and stronger demand, shows the latest report by the National Association of Realtors. The median existing single-family home price was $229,400, which represents an 8.2% increase from a year ago. Prices went up in 93% of 176 measured markets when compared with the same period of 2014. In the first quarter of 2015, 85% of metro areas measured showed an increase in values. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” said Lawrence Yun, NAR chief economist, in a news release. “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.” More: Where Are Existing-Home Sales Headed? At the end of the second quarter, there were 2.3 million existing homes available for sale, slightly above the 2.29 million units at the end end of the same period in 2014. The average supply during the second quarter was 5.1 months, down from 5.5 months a year ago. California saw the highest prices. Four of the five most expensive housing markets in the second quarter were in that state, led by San Jose, where the median existing single-family price was $980,000. Cumberland, in Maryland, showed the lowest median price in the country, at $82,400. Total existing-home sales in the second quarter stood at a seasonally adjusted annual rate of 5.3 million, 6.6% up from the first quarter and 8.5% higher than the second quarter in 2014. Yun, of NAR, warned that declining affordability remains a hurdle for renters considering homeownership, especially in higher-priced markets. To purchase a single-family home at the national median price, a buyer making a 5% downpayment would need an income of $49,195, according to NAR. More: Pending Home Sales Slip, Remain HighView the San Jose listing on Mansion Global. Follow Mansion Global on Facebook, Twitter and Instagram Write to us at info@mansionglobal.com
Short Supply Pushes Home Prices Higher
Nearly all metro areas in the U.S. see an increase in values
The median existing single-family price in San Jose, Calif., was $980,000, the most expensive in the country. Shown above, a six-bedroom new home is listed for $4.2 million.
COLDWELL BANKER RESIDENTIAL BROKERAGEThe median existing single-family price in San Jose, Calif., was $980,000, the most expensive in the country. Shown above, a six-bedroom new home is listed for $4.2 million.
COLDWELL BANKER RESIDENTIAL BROKERAGE