Metros report high home price growth
Posted on Thursday, November 7, 2013 at 11:04:07 AM
Those interested in residential financing may find home prices in many metropolitan regions higher. A recent report by the National Association of Realtors has noted that gains on a yearly basis during the third quarter were particularly strong.
In 88 percent of these markets, the median existing single-family home price rose when comparing 2013's third quarter to the same time in 2012, according to NAR. Out of the total 163 metro areas, 54 reported double-digit price gains.
"Rising prices and higher interest rates have taken a bite out of housing affordability," said Lawrence Yun, NAR chief economist. "However, we have the ongoing situation of more buyers than sellers in the market, so lower sales will help to take the pressure off home price growth and allow them to rise slowly at a single-digit growth rate in 2014."
The most expensive locations were San Jose, Calif., with a median single-family home price of $805,000, and San Francisco, at $705,000, NAR reported.
Even though residential financing rates are near historic lows, the housing recovery has been up and down. According to NPR, several factors could get in the way, such as political instability and economic uncertainty.
Glenn Kelman, CEO of Redfin, told the news source that buyers are on a hair trigger, and they're hot one week and cold the next.