Market Update Home Prices Jump In Second Quarter

Dated: 08/31/2017

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Home Prices Jump 6.2 Percent in Second Quarter according to a recent National Association of Realtors®report.

Supply and demand imbalances in much of the country slightly tempered the pace of sales and caused home prices to maintain their robust growth in the second quarter.

The national median existing single-family home price in the second quarter was $255,600, which is up 6.2 percent from the second quarter of 2016 ($240,700) and surpasses the third quarter of last year ($241,300) as the new peak quarterly median sales price. The median price during the first quarter increased 6.9 percent from the first quarter of 2016.

Home prices in most metro areas continued their fast ascent in the second quarter because supply remained at pitiful levels. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets.

The need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of home ownership. 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. 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 the second half of the year.

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Pires Team

Broker Associate (14 years experience) Specialties: Buyer's Agent, Listing Agent, Relocation, Consulting Everything we do, we believe in helping families and individuals achieve their goal....

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