RealtyTrac: US home prices climb on yearly basis
Posted on Wednesday, November 26, 2014 at 8:06:50 AM
Following the Great Recession, home prices across the country dropped significantly. According to RealtyTrac, the peak for the median sales price was $237,537 in August 2006 - and then dipped to its lowest point of $141,000 by March 2012.
However, since that time, conditions have been steadily improving. In October of this year, RealtyTrac reported that the new median sales price was $193,000 - up 37 percent from that low point in 2012, although 19 percent below the high in 2006. That is also an increase compared to September 2014 and the same time last year.
"Home prices have risen substantially in the lower price ranges - generally under $400,000," explained Phil Shell, Denver-based managing broker of RE/MAX Alliance. "That has led most underwater properties out of trouble. We are seeing a 'compression' in the market because we are experiencing record low inventories. Prices on the low end are coming up, and while the high end is not necessarily coming down, it has flat-lined."
In addition, the Mortgage Bankers Association noted that interest in residential financing is on the rise as well, with applications for mortgages climbing 4.9 percent on a weekly basis for the week ending Nov. 14. Refinanced mortgages made up 61 percent of total applications, down from the 63 percent reported for the week prior.