Scotsman Guide > News > Top Headlines > News Story

 Enter your e-mail address and password below.

  •  
  •  

Forgot your password? New User? Register Now.

Top Headlines

 
Subscribe icon Subscribe to our weekly e-newsletter, Top News.

Home prices rise in nine of 10 U.S. markets


Although a recent CoreLogic report indicated that home-price appreciation decelerated in June, new data from the National Association of Realtors (NAR) revealed that a vast majority of U.S. markets still saw home-price increases.

HouseMoneyIn the second quarter of this year, NAR reported that prices rose in 91% of the markets it tracks, with 162 of 178 metro areas recording price gains. That’s up from 86% in the first quarter of 2019. On the whole, NAR said, home prices are “mildly reaccelerating,” especially at more affordable price points.

The U.S. median price for an existing single-family home during second-quarter 2019 was $279,600, up 4.3% year over year.

Metro areas in which median prices dropped were mainly high-cost areas. This suggests that despite these areas continuing to see price declines, high housing costs continue to fuel demand fatigue. The steepest declines were seen in metros such as San Jose (down 5.3%), San Francisco (down 1.9%) and Honolulu (down 1.2%). These metros also ranked first, second and fourth, respectively, among the country's most expensive housing markets in the past quarter.

Conversely, 10 metro areas experienced double-digit price increases. These metros include moderately priced cities that have recently been cited as heavy recipients of transplants from expensive coastal regions. Boise, Idaho, with year-over-year price growth of 12.5%, topped that list.

Dwindling supply continues to be a primary culprit of upward home-price pressure. Although the homebuilding industry currently faces its own issues, more homes must be brought to market to keep up with demand, NAR chief economist Lawrence Yun said.

“New-home construction is greatly needed, [but] home construction fell in the first half of the year,” he said. “This leads to continuing tight inventory conditions, especially at more affordable price points.”

Yun added that despite the strong U.S. labor market, lagging affordability driven by low supply will continue to produce lackluster sales if left unchecked. Indeed, while the U.S. median household income is estimated to have grown to $78,366 in the second quarter, affordability still decreased, thanks to price appreciation outpacing income growth.

“Housing unaffordability will hinder sales irrespective of the local job-market conditions,” Yun said. “This is evident in the very expensive markets as home prices are either topping off or slightly falling.”

Yun alluded to low mortgage rates creating an environment in which housing sales should improve. If current economic uncertainty gives way to a slowdown, however, not even low rates will be enough for sustained momentum, he noted.

“The exceptionally low mortgage rates will help with housing affordability over the short run,” Yun said. “But if the low interest rates are due to weakening economic confidence, as reflected from a correction in the stock market, then the low rates will not help with job growth and will eventually hinder homebuying and home construction.”


 

Questions? Contact at (425) 984-6019 or arniea@scotsmanguide.com.

Get the latest news and articles from Scotsman Guide straight to your inbox.


Send me the following e-mails:





Learn more about Scotsman Guide e-mails

Thank you for signing up to receive e-mails from Scotsman Guide.

A confirmation e-mail has been sent to the address you provided.

For questions regarding your e-mail subscriptions please contact Circulation@ScotsmanGuide.com or call (800) 297-6061.


Fins A Lender Post a Loan
Residential Find a Lender Commercial Find a Lender
Follow Us:Visit Scotsman Guide Facebook pageVisit Scotsman Guide LinkedIn pageVisit Scotsman Guide Twitter page
 
 
 
 

 
 

© 2019 Scotsman Guide Media. All Rights Reserved.  Terms of Use  |  Privacy Policy