Price Hikes in 87% of Markets; New Record Set

Price Hikes in 87% of Markets; New Record Set
National Association of REALTORS® article by Daily Real Estate News | August 16, 2017

House 1015Median home prices in the second quarter eclipsed a record high set in 2016, jumping 6.2 percent year over year as the inventory crunch continues to push property values higher, according to the National Association of REALTORS®.

The national median price for an existing single-family home was $255,600, up from $240,700—the previous high—in the second quarter of 2016, NAR reported Wednesday. Prices for single-family homes rose in 87 percent of U.S. housing markets; 23 metros saw double-digit increases.

“The 2.2 million net new jobs created over the past year generated significant interest in purchasing a home in what was an extremely competitive spring buying season,” says NAR chief economist Lawrence Yun. “Listings typically flew off the market in under a month—and even quicker in the affordable price ranges—in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets.”

Yun continues to urge for more new-home construction to meet the demand in the housing market. “An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth-building benefits of homeownership,” he says.

Total existing-home sales, which includes single-family homes and condos, dropped 0.9 percent to a seasonally adjusted annual rate of 5.57 million in the second quarter, NAR reports. Sales are still 1.6 percent higher than a year ago.

But at the end of the second quarter, 1.96 million existing homes were available on the market, a 7.1 percent drop from a year ago. The average supply in the second quarter was at 4.2 months.

“Mortgage rates have subsided in recent months, which has only somewhat helped take away some of the sting prospective buyers are experiencing with the deteriorating affordability conditions in many areas,” Yun says. “Household incomes may be rising and giving consumers assurance that now is a good time to buy, but these severe inventory shortages will likely continue to be a drag on sales potential in the second half of the year.”

The five priciest housing markets in the second quarter were: San Jose, Calif., metro area, where the median existing single-family price was $1,183,400; San Francisco, $950,000; Anaheim-Santa Ana, Calif., $788,000; urban Honolulu, $760,600; and San Diego, $605,000.

Meanwhile, the five lowest-cost metros in the second quarter were: Youngstown-Warren-Boardman, Ohio, $87,000; Cumberland, Maryland, $98,200; Decatur, Illinois, $107,400; Binghamton, New York, $109,000; and Elmira, New York, $111,600.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 081617

Kenneth Bargers REALTOR® License 318311  |  Pilkerton Realtors License 257352
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Median Home Prices Rise While Home Sales Lessen in July

Median Home Prices Rise While Home Sales Lessen in July
Press Release by Greater Nashville Association of REALTORS® | August 8, 2016

GNAR-225x100NASHVILLE, Tenn. (Aug. 8, 2016) – There were 3,705 home closings reported for the month of July, according to figures provided by the Greater Nashville Association of REALTORS®. This represents a 3.3 percent decrease from the 3,832 closings reported for the same period last year.

Year-to-date closings for the Greater Nashville area are 22,157. That is an increase of 5.3 percent from the 21,038 closings reported through July 2015.

“The slight decline in home sales is not a cause for concern, and is actually a positive for the market,” said GNAR President Denise Creswell. “The furious pace homes have been selling at is not sustainable. The imbalance of supply and demand, combined with the continued gains in price, means inevitably we will reach a point where the market will slow down. This pause may be a sign the market is beginning to slow down and correcting itself until more inventory is available.

“July marks the first time in seven months that Middle Tennessee home sales have been down year-over-year,” said Creswell. “That aside, our pending home sales numbers remain high, proving homeownership is still important and there are plenty of prospective buyers in the marketplace.”

There were 3,724 sales pending at the end of July, compared with 3,708 pending sales at this time last year. The average number of days on the market for a single-family home was 54 days.

The median residential price for a single-family home during July was $267,000 and for a condominium it was $189,986. This compares with last year’s median residential and condominium prices of $234,900 and $161,500, respectively.

Inventory at the end of July was 12,329, down from 13,728 in July 2015.

“Despite a slight decrease in sales, median home prices continue to rise. We’re in the middle of the perfect storm that continues to drive up our median prices,” said Creswell. “Nashville is an incredible place to live, so the demand is high. But our low inventory levels make meeting the demand a challenge. At the end of July, interest rates were hovering around 3.5 percent, which is lower than the 4 percent rate this time last year. All of these factors combined contribute to increased prices.

“Homeowners appreciate the gain in home prices, as it positively impacts their equity and investment. But for those trying to buy a home, especially those new to the market, these gains are obstacles. The simple fact remains, until we have more inventory available, home prices will continue to rise. Realtors are hopeful the recent legislative change in how condominiums are approved for FHA financing will add more units to the supply and lessen the burden on first-time buyers.”

### The Greater Nashville Association of REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors and subscribe to its strict Code of Ethics. ###

Source: GNAR Press Release 080816

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
(615) 512-9836 cellular • (615) 915-5901 facsimilekb@bargers-solutions.com email
bargers-solutions.com webkennethbargers.com blogSearch Properties
(615) 371-2474 office • (615) 371-2475 facsimile • 2 Cadillac Drive, Brentwood TN 37027 address

The 10 Most Undervalued Housing Markets

Nationwide, only 87 markets are in the overvalued category, according to a newly released 2010 report compiled by IHS Global Insight and PNC Financial Services.

That means 242 of the 299 largest U.S. housing markets are selling for prices that even bankers think are less than fair market value. The judgment is based on a comparison of median home prices, local interest rates, population densities and income, plus historic premiums or discounts.

Here are the 10 most undervalued areas, according to the study

  1. Las Vegas, -41.4 percent
  2. Vero Beach, Fla., -39.8 percent
  3. Merced, Calif., -37.7 percent
  4. Cape Coral, Fla., -36.8 percent
  5. Houma, La., -34.6 percent
  6. Port St. Lucie, Fla., -33.3 percent
  7. Warren, Mich., -32.3 percent
  8. Vallejo, Calif., -31.9 percent
  9. Modesto, Calif. -31.8 percent
  10. Stockton, Calif., -31.8 percent

Source: CNNMoney, Les Christie (01/27/2010)