Per the National Association of Realtors (NAR) recent survey shows metro home values have increased approximately 4% in first quarter of 2019. Countrywide, the median price is $254,000 for a single-family dwelling. Within the 86% measured markets, single-family home prices rose, of those 13 metro markets realized double-digit increases. This reflects the fact that a typical homeowner has seen a $9,500 increase equity over the past year. With these higher home prices this is creating an affordability issue, median incomes have risen to $77,752 in the first quarter of 2019. Now a home buyer who is making a 5% down payment would need an income of $60,143 to purchase a home. The increase in housing cost in some housing markets may have the effect of encouraging future home buyers to job search and consider other regions of the country. This leads to the fact that these high housing areas need to add more affordable housing to prevent buyer pullback. With a greater housing supply, this would cool the housing market rise in home prices. Below are some indicators that NAR has provided:
- Home sales – Home sales in first quarter of 2019 which include homes and condos rose in first quarter of 2019, but was 5.4 % lower than prior year. The number of available homes for sale has been rising in the first quarter of 2019 up 2.4% over 2018 first quarter. As of end of 2019 first quarter there was a 3.8-month supply of homes.
- Home sales experience in first quarter of 2019 compared to first quarter of 2108: In the northeast home sales were down 1% while median home price was up 3.7%. In the midwest sales homes were down 4% in first quarter of 2019, and median home price rose 3.9%. Now in the South home sales were up 4.3%, and median home prices rose 2.5%. Finally, in the West home sales were up 2.8%, and median home prices rose 3.5%