According to the National Association of Realtors (NAR) increased median home prices and the volume of existing home sales in 133 out of 150 metro areas reveal a seller’s market.
Volume Sags As Prices Jump In West
Sales volume is up everywhere but in the west, where limited housing supplies caused a slip in sales in the first quarter, though they remain slightly above last year’s levels. The shortage contributes to 24.4% increase in median home price over the first quarter of 2012.
Still Affordable, Despite Performance
And while median home prices have increased, with the best year on year performance in over seven years, prices are still affordable enough for buyers. The report points out that while home prices have increased, they are still well below their peak levels and represent a good investment for those in the market.
Economist Foresees Higher than Average Increase
In an article with Property Wire, Lawrence Yun, NAR’s chief economist, was quoted as saying that because inventory conditions are expected to remain fairly constrained, so price increases are expected to climb well above historical returns. He predicted the increases to exceed inflation by much more than 1 or 2% above inflation typically expected. He does warn that he expects home growth price to moderate in 2014 if home builders can continue to ramp up production.
Bargains in Declining Markets
And though the majority of the metro markets were experiencing increases in the median home price, there remain 17 metro areas in which the median home price decreased. Those markets may hold good bargains for the adventurous, strategic real estate investor.
Condo Prices Rising Too
It’s not just homes that are experiencing rising prices. Existing condo prices are up 10.4% over the first quarter of last year. There were increases in 39 metro areas with declines in just 15.
Certainly these findings will come as no surprise to the real estate investment professionals across the country, but knowing what the realtor’s association is saying and doing is always a good practice.
Judging from what the NAR report reveals about the changes in the marketplace over the first quarter of this year, the outlook seems very positive. This bodes well for both the general marketplace and the real estate investing professional in particular.
Positivism generates opportunity. There are certainly opportunities in almost every sector of the country in a wide range of real estate investment categories. It’s certainly an ideal time to step up your game and propel your career forward.
