Home prices increased by 1.7% from the first quarter to the second quarter of 2017 according to the House Price Index (HPI) reported by the Federal Housing Finance Agency, and increased by 6.6% from the second quarter of last year. The FHFA monthly HPI is calculated using home sale price data from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac, therefore exclude high-end home sales purchased with jumbo loans and/or cash sales.
“U.S. house prices rose in nearly every state during the second quarter,” stated FHFA Senior Economist William Doerner. “New home sales are climbing, but relative to the overall population, they still remain low from a historical perspective. The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years.”
In other housing news, the national median existing single-family home price rose 6.2% to $255,600 in the second quarter 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.
In the West, existing home sales decreased 3.7% in the second quarter, but are 3.1% above a year ago. The median existing single-family home price in the West increased 7.5% to $372,400 in the second quarter versus the second quarter of 2016.
Lawrence Yun, NAR chief economist, said “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. Listings typically flew off the market in under a month – and even quicker in the affordable price range – in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets.”
Yun added, “The glaring 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 homeownership.”
Here’s a quick look at the number of closed sales in the Beach Cities / South Bay thus far in 2017:
| CLOSED SALES | Year-over-Year | Single-Family Residence | |
|---|---|---|---|
| El Segundo | 46 | 62 | -16 |
| Manhattan Beach | 233 | 199 | +34 |
| Hermosa Beac | 61 | 79 | -18 |
| N. Redondo Beach | 124 | 120 | -4 |
| S. Redondo Beach | 61 | 86 | -25 |
| Hollywood Riviera | 77 | 59 | +18 |