Jordan Borchard posted in
Housing in Housing News
Home Prices Rise in 96% of US Metros
Written by: Ryan Smith
Home costs are nonetheless on the rise regardless of the COVID-19 pandemic, with the “overwhelming majority” of US metro areas posting value features in the second quarter, in line with a report by the National Association of Realtors.
Median single-family residence costs rose 12 months over 12 months in 96% of markets measured by NAR in Q2, with 174 out of 181 metro areas posting value features. That’s similar to the proportion of metro areas posting value features in Q1, NAR mentioned. The nationwide median value for an present single-family residence was $291,300 in Q2. That was a 4.2% 12 months over 12 months. However, it marked a slower tempo or appreciation than the pre-pandemic charge of 7.7% recorded in Q1.
“Home costs have held up effectively, largely as a result of mixture of very robust demand for housing and a restricted provide of properties on the market,” mentioned Lawrence Yun, chief economist at NAR. “Historically low stock proceed to bolster and even improve costs in some areas.”
Fifteen metro areas posted double-digit value development, together with Huntsville, Ala. (13.5%), Memphis, Tenn. (13.4%), Boise, Idaho (12.6%), Spokane, Wash. (11.8%), Indianapolis (10.8%), and Phoenix, Ariz. (10.2%).
Yun mentioned that whereas consumers will proceed to be lured into the market by record-low mortgage charges, new properties are wanted to fulfill that demand.
“Unless an growing quantity of new properties are constructed, some consumers might miss out on the chance to buy a house or have the chance delayed,” he mentioned. “In the meantime, costs present no signal of reducing.”
San Jose, Calif., continued to be the most costly metro space in the nation with a median value of $1.38 million, and posted a year-over-year value achieve of 3.8% in the second quarter. San Francisco was in second place, though its median value held regular at $1.05 million, adopted by Anaheim, Calif. ($859,000; 2.9% achieve), city Honolulu ($815,700; 3.8% achieve), and San Diego ($670,000; 2.3% achieve).
“This final quarter confirmed heavy purchaser exercise in much less occupied areas when in comparison with extremely populated cities reminiscent of San Francisco, New York and Washington, D.C., associated in half to the longer shutdowns in these cities,” Yun mentioned. “In the midst of the pandemic, some consumers are on the lookout for housing in much less crowded and extra inexpensive metros.”
