According to the latest data US house prices are growing at the fastest rate since 2005 (right before the crisis) and that is saying something. A new report from the National Association of Realtors shows that the national median price for a single family home in the second quarter was $203,500, a romping 12.2% higher than the $181,300 recorded at the same time last year -- the strongest year over year growth since Q4 2005 when prices grew 13.6%.
This is not a shock jump in prices though. According to the NAR data prices rose 11.3% year on year in the first quarter.
"There continue to be more buyers than sellers, and that is placing pressure on home prices, with multiple bids common in some areas of the country," said Lawrence Yun, NAR's chief economist. "Higher interest rates are now causing sales to level out, but the tight supply conditions look to be with us for the balance of the year in most of the country. Areas with tighter supplies generally are seeing the strongest price growth, including markets such as Sacramento, Atlanta, Las Vegas, Naples, San Francisco and Los Angeles."
The latest monthly report from the NAR shows that sales fell in June, but prices have continued to rise strongly in much of the country. Indeed, thirty-one percent of the areas tracked by NAR posted double-digit gains in Q2. Today Las Vegas reported that median home prices in June are up more than 35 percent from a year ago.
A recent 5report from Core Logic predicted slowing growth in US house prices next year, with price growth averaging 4% for the years 2013-2017. This has the tendency to be perceived as negative, but with growth currently at such a runaway level the US housing market needs some cold water
- Monday 12 August 2013