Rental prices and home values stay strong
Posted on Wednesday, October 28, 2015 at 12:39:42 PM
U.S. rental prices and home values continue to thrive in the face of a global economy that has shown signs of cooling. The Associated Press reported this week that the resilient market was driven by demand from eager homebuyers and a lean supply of properties. High demand earlier in the year generated both growth and new construction around the country.
In the 12-month period ending in August, Standard & Poor's/Case-Shiller 20-city composite home price index cataloged a 5.1 percent increase. That accounts for 0.4 percent growth month-over-month. Economists consider that level more stable and sustainable than the rapid gains recorded in the early months of 2014. Citing data from Zillow, the Associated Press reported that nationwide median rental prices grew a seasonally adjusted 3.7 percent from September 2014. Sales of existing homes increased 4.7 percent in September to also beat last year's numbers.
Metro areas like San Francisco, Denver, and Portland, Oregon were the major beneficiaries of rising home values and rental prices. Spurred by the improving market, new homes and apartments are springing up in those cities. With the right residential financing, interested buyers have plenty of options to choose from.