Home prices in the second quarter of 2015 rose in 163 out of 176 metro areas, continuing their upward climb despite economistsí warnings of looming affordability problems and limited inventory of homes for sale, according to a recent report from the National Association of Realtors. The median existing single-family home prices rose to $229,400 in the second quarter, up 8.2% from a year earlier, and a faster rate of increase than the 7.1% price rise in the first quarter.
According to NAR, California cities continued their status as some of the most expensive markets in the US, with San Jose atop the list with a $980,000 median sales price. In the West, existing home sales climbed 8.1% in the second quarter and are 8.1% above a year ago. Additionally, the median home price for single-family homes in the West increased 9.6% to $325,200 in the second quarter compared to the second quarter in 2014.
Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said. “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”