U.S. home prices continued to accelerate during the fourth quarter of 2014, reported the National Association of Realtors, which warns that a shortage of housing could emerge this spring.
Nationally, the median price for a single-family residence in the fourth quarter—$208,700—climbed by 6 percent compared to 12 months earlier.
About 86 percent of metros studied by NAR saw higher median prices for single-family homes. Only 73 percent of markets could say that in the third quarter. Over the past three years, home prices have increased by 25 percent on average, said Lawrence Yun, the NAR’s chief economist.
“This is good news for current homeowners, but remains a challenge for buyers who are seeing home prices continue to outpace their wages,” Yun said. “Low interest rates helped preserve affordability last quarter, but it’ll take stronger income gains and more housing supply to help meet the pent-up demand for buying.”
The average supply of homes for sales was enough for not quite five months, less than the six to seven months that experts classify as a normal, healthy supply of housing.
“Despite affordable housing conditions in most of the country, an upward pressure on home prices still persists in some metro areas—particularly in the West—where the current supply of new and existing homes for sale is failing to keep pace with overall demand and growing populations,” Yun said. “Unless homebuilders significantly boost construction, housing supply shortages could develop and lead to further price acceleration this spring.”
1.San Jose, CA // $855,000 median price for an existing single-family home
2.San Francisco, CA // $742,900 median price for an existing single-family home
3.Honolulu, HI // $701,300 median price for an existing single-family home
4.Anaheim-Santa Ana, CA // $688,500
5.San Diego, CA // $493,100
1.Youngstown-Warren-Boardman, OH // $78,000 median price for an existing single-family home
2.Rockford, IL // $86,000 median price for an existing single-family home
3.Toledo, OH // $87,100 median price for an existing single-family home
4.Decatur, IL // $90,400 median price for an existing single-family home
5.Cumberland, MD // $90,500 median price for an existing single-family home
Article compliments of Community Investor Magazine