Home Prices Increase in 85% of U.S. Cities
A bit of good news from NAR.
According to NAR, home prices have climbed in 85% of U.S. Metropolitan home markets as low mortgage rates and the strongest labor market in almost 7 years spurred demand.
The median price of an existing single-family home rose from a year earlier in 148 of the 174 areas measured, the NAR said in a recent report.
Fifty-one areas had price gains of 10% or more; prices declined in 25 areas.
“The housing market is benefiting as employment returns to pre-crisis levels.” says a spokesperson at NAR.
Contracts to buy homes rose in March to the highest level for the month since 2005, according to the NAR. (March is the latest statics available).
The unemployment rate was 5.5% in February and March, (a level the Federal Reserve defines as full employment) the rate dropped to 5.4% in April.
Also, “boomerang buyers” have become eligible again and studies have shown that once consumers have owned a home (but then forced to rent because of “life circumstances”) purchase home in higher numbers than those who are currently renting.