Thursday, May 6, 2021
Protect Your Immune System Today!
Home U.S Home prices went up all over the country

Home prices went up all over the country


Existing home prices rose in all 183 metropolitan statistical areas tracked in the fourth quarter of last year, according to the National Association of Realtors. Double-digit price gains were seen in 161 metro areas, or 88% of them. That was up from 115 areas with such growth in the third quarter.

“The fourth quarter of 2020 presented circumstances ripe for home price increases,” said Lawrence Yun, NAR chief economist. “Mortgage rates reached record lows, thereby driving up the demand,” he said. “At the same time, inventory levels also reached record lows, leading to grim inventory conditions of insufficient supply in the fourth quarter.”

This meant that a monthly mortgage payment on a typical single-family home (that is not new construction) rose to $1,040 from $1,020 a year ago, while the family income needed to afford a home increased to $49,908, compared to $48,960 one year ago.

All regions of the country experienced double-digit year-over-year price growth. The Northeast had the biggest gain at 21%, followed by the West at 16%, the Midwest at 15% and finally the South at 14%.

Metro areas with the largest home price gains were concentrated in the Northeast and Florida, with Idaho and Washington seeing large increases as well.

The biggest gainers were Bridgeport, Connecticut, up 40%; Pittsfield, Massachusetts, up 32%; Atlantic City, New Jersey, up 30%; Naples, Florida, up 30%; Barnstable, Massachusetts, up 29%; Crestview, Florida, up 29%; Boise City, Idaho, up 27%; Binghamton, New York, up 24%; Kingston, New York, up 24%; and Spokane, Washington, up 24%.

Vacation destinations like Atlantic City, Naples and Barnstable on Cape Cod appeared to be popular, along with more affordable small towns within driving distance of major cities, like Binghamton and Kingston in New York, according to NAR.

“Although tourism took a major hit overall throughout 2020, our data shows that vacation housing still did well in terms of sales,” Yun said. “Many people purchased in these areas because they found themselves with new work-from-home freedoms.”

The most expensive area in the country was San Jose, California, with a median home sale price of $1.4 million. This was followed by San Francisco, at $1.14 million; Anaheim, California, at $935,000; Honolulu, at $902,500; San Diego, at $740,000; Los Angeles at $688,700; Boulder, Colorado at $661,300; Seattle at $614,700; Nassau County, New York, at $591,600; and Boston at $579,100.

These most expensive markets all saw double-digit growth in median single-family existing home sales during the fourth quarter, with the exception of Boulder.

Home sellers have seen the upside of price increases. But these large swings in prices could soon turn new buyers off.

“The average, working family is struggling to contend with home prices that are rising much faster than income,” Yun said. “This sidelines a consumer from becoming an actual buyer, causing them to miss out on accumulating wealth from homeownership.”



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Disney World ends temperature checks for guests and staff

(CNN) — Visitors to Walt Disney World Resort in Orlando, Florida, will be able to skip temperature checks at the park from May...

The man who found the Titanic is on a new quest

(CNN) — In a career that's spanned more than 60 years, Robert Ballard has conducted over 150 underwater expeditions and made countless significant...

Huge brawl mars hockey game as controversy continues

There was bad blood between the teams after Monday's game in which Capitals enforcer Tom Wilson committed a series of penalties, including one...

Weightlifter Laurel Hubbard poised to become first transgender Olympian — report

Hubbard was effectively guaranteed a spot in the women's super heavyweight category, the report from the Olympics-focused trade publication said, after the International...

Recent Comments