Excerpted from NAR® press releases
|A promising climb in home sales throughout the country amidst insufficient supply caused home prices to steadily rise in most metro areas during the Q2 ’15, according to the latest quarterly report by the National Association of Realtors®.|
|• The median existing single-family home price increased in 93% of measured markets, with 163 out of 176 metropolitan statistical areas (MSAs) showing gains based on closings in the second quarter compared with the Q2 ‘14. Thirteen areas (7%) recorded lower median prices from a year earlier.|
|• The number of rising markets in the second quarter increased compared to the first quarter, when price gains were recorded in 85% of metro areas.|
|• Thirty-four metro areas in the second quarter (19%) experienced double-digit increases, a decline from the 51 metro areas in Q1 ‘15.|
|• Nineteen metro areas (11%) experienced double-digit increases in the Q2 ’14.|
|Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he 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 continues, “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.”|
|The national median existing single-family home price in the second quarter was $229,400, up 8.2% from Q2 ’14 ($212,000). The median price during Q1 ’15 increased 7.1% from a year earlier.|
The five most expensive housing markets in Q2 ’15 were the San Jose, Calif., metro area, where the median existing single-family price was $980,000; San Francisco, $841,600; Anaheim-Santa Ana, Calif., $685,700; Honolulu, $698,600; and San Diego, $547,800.
The five lowest-cost metro areas in the second quarter were Cumberland, Md., where the median single-family home price was $82,400; Youngstown-Warren-Boardman, Ohio, $85,000; Rockford, Ill., $94,700; Decatur, Ill., $96,000; and Elmira, N.Y., $98,300.