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Homeowners love living in the city

Posted on Wednesday, August 12, 2015 at 11:41:42 AM

These days, many prospective homebuyers are singing the same tune, "I love living in the city." 

High demand fueled a year-over-year uptick in single-family home prices in almost all metro areas in the second quarter, according to information from the National Association of Realtors. The median existing single-family home price jumped up in 93 percent of measured markets. A mere 13 out of 176 areas recorded median prices lower than last year. 

Lawrence Yun, NAR chief economist, explained that as rent increases, mortgage rates remain low and the job market continues its strong monthly performances, demand for residential financing and homes will remain strong. For these reasons, sales were stronger than any year since the economic downturn. This, combined with tight inventory, led to price increases in most metro areas. 

The national median existing single-family home price in the second quarter was $229,400, an 8.2 percent year-over-year increase. Four of the five most expensive markets measured were in California - San Jose, San Francisco, Anaheim-Santa Ana and San Diego, in that order. The one market outside of the Golden State to make it in the top five was Honolulu, Hawaii, which came in fourth behind Anaheim-Santa Ana. 

Consistent demand for homes will likely remain in place, at least as long as mortgage rates remain below 5 percent which will, in turn, push up prices while inventory remains tight.