Home prices across the nation climbed 6.2% in the second quarter 2017 to eclipse the 2016 high, according to the latest report by the National Association of Realtors® (NAR). The national Housing supply continues to affect sales due to a high demand and low supply which slowed the pace of sales.
The median sold price for existing single-family home homes in the second quarter was $255,600. A 6.2% 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, according to NAR.
87% of the metropolitan areas measured saw an increase in single-family home prices last quarter, with 154 out of 178 metropolitan statistical areas1 (MSAs) showing sales price gains in the second quarter compared with the second quarter of 2016. 13% (23) reported lower median prices from the previous year.
Lawrence Yun, NAR chief economist, says home prices in most metro areas continued their fast ascent in the second quarter because supply remained at pitiful levels. “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,” he said. “Listings typically flew off the market in under a month2 — 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.”
Added Yun, “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.”