NAR: Healthier Home Prices in Q4By Suzanne De Vita
Across the largest markets, home prices are rising, but at a healthier rate than in recent years, according to new research.
From the fourth quarter of 2017 to the fourth quarter of 2018, home prices rose 4 percent, according to a National Association of REALTORS® (NAR) report. On an annual basis, there were higher home prices in 92 percent, or 163, of the 178 metropolitan areas in the report. Comparing the largest markets, the median price was $257,600. Among condos/co-ops, the median price was $237,900. Despite the easing gains in home prices, affordability is still tight, the report shows. To buy at the median price, and assuming a 5 percent down payment, a homebuyer would have to have an income of $62,954; assuming 10 percent, a buyer would have to have $59,640; and assuming 20 percent, $53,013. Although average earnings have increased nationally to $77,392, high home prices, and now, higher mortgage rates, are contributing to the cost crunch. According to the report, with affordability diminished, existing-home sales slid, down 1.8 percent from the last quarter and 7.4 percent from the prior year. At the close of the fourth quarter of 2018, existing for-sale inventory totaled 1.55 million—6.2 percent higher than the prior year. During the fourth quarter, the average supply was 4.0 months. By region: Midwest Q4 Existing-Home Sales: -5.9% YoY Q4 Median Price: $196,900 (+1.6% YoY) Northeast Q4 Existing-Home Sales: -5.4% YoY Q4 Median Price: $286,000 (+6.5% YoY) South Q4 Existing-Home Sales: -5.4% YoY Q4 Median Price: $228,200 (+3.3% YoY) West Q4 Existing-Home Sales: -6.5% YoY Q4 Median Price: $383,100 (+1.8% YoY) According to the report, the most expensive markets were:
For more information, please visit www.nar.realtor. Suzanne De Vita is RISMedia's online news editor. Email her your real estate news ideas at sdevita@rismedia.com. |
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