Home Prices On The Rise In 20 Major Metropolitan Areas
According to a recent article in the Wall Street Journal, we have seen housing prices on the rise at the fastest rate we have seen in the past seven years .
“According to the Standard & Poor’s/Case-Shiller index that tracks home prices in 20 major metropolitan areas, all 20 cities posted year-over-year gains for the second consecutive month, which hasn’t happened since 2005, before the crash.” In addition, according to ABCNews.com, we have seen home prices on the rise and they are surging up 9.3%, the biggest jump in seven years.
Why the increase? For one, a nationwide housing shortage. Much of this data points to a lack of supply. With fewer homes on the market, more competition makes the prices of homes higher. In addition, there are lots of buyers, 25% more this year than last. With the economy overall on the rise, more people are finding themselves employed again and able to purchase homes. Most homes are also selling within three to five days and bidding wars are common. Houses are going quickly and sellers are being courted with higher offers and more flexible negotiations.
Not to mention, low-cost mortgage rates are helping with the immediate appeal of homeownership. The low mortgage rates makes real estate investing more attractive. “Even with the gains in home prices, housing is more affordable than at any time in the past 30 years because mortgage rates are so low.”
All data points to a continued booming housing market with no signs of slowing down yet. This will remain a good market to buy or sell a house for the unforeseen future. So be sure to keep this information in mind when looking to sell or buy your next home. Competition is high and knowledge of the market is key. Work with a real estate agent that understands the current real estate market and one that can help you buy your dream home or sell your property for the best return possible.
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