US Home Prices have Risen for 40 Straight Quarters

By
Real Estate Agent with HomeSmart Real Estate BR632450000

"The country has seen 40 consecutive quarters in which home prices have risen. Notably, prices rose in every state nationwide, led by Idaho, Utah, Arizona, Montana and Rhode Island" per Jacob Passy in a Aug 31, 2021 MarketWatch posted on  Realtor.com. Further he says, "A separate quarterly house price index from the Federal Housing Finance Agency showed that home prices rose nearly 5% between the first and second quarters of 2021. 

 

Mr. Passey further stated, "The intense competition for homes in recent months — fueled, in part, by low mortgage rates and a lack of housing inventory — translated into steadily rising home prices for much of the past year..... ‘The strength in the U.S. housing market is being driven in part by reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes.’....Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI"

Jeff Masich

Continuing, "The latest edition of the S&P CoreLogic Case-Shiller Home Price Index showed that home prices increased 18.6% from a year ago in June, marking the third consecutive month of record growth in the more than 30-year history of the index. The separate 20-city index, which measures price appreciation in major metropolitan areas across the country, saw a 19.1% year-over-year gain.

 

The big picture: The intense competition for homes in recent months — fueled, in part, by low mortgage rates and a lack of housing inventory — translated into steadily rising home prices for much of the past year. But in more recent years, it’s become clear that the situation is beginning to change, and the breakneck pace of home-price appreciation is cooling.

 

“July also saw real-estate markets welcome a larger influx of new listings, as homeowners across the country decided to move on with pandemic-delayed plans to sell,” said George Ratiu, manager of economic research at Realtor.com. “The inventory boost has already taken the sting out of the steep price gains seen during the first six months of this year, indicating that the overheated appreciation pace is behind us.”

 

A continued low rate environment should ensure steady interest among home buyers in the fall and allow families to lock in cheap financing amid the reprieve in home-price growth.

Mortgage Rates Trend

What they’re saying: “Despite a pullback in the spring, home sales remain above pre-virus levels, while available listings are sparse, pressuring prices at an unsustainably fast rate. But don’t worry, the Fed’s not,” Sal Guatieri, senior economist at BMO Capital Markets, said in a research note.


“While the housing market feels like it has legs that never get tired, inventory and affordability constraints are still expected to put a damper on price growth. Some early data suggests that the buyer frenzy experienced this spring is tapering, though many buyers still remain in the market,” said CoreLogic deputy chief economist Selma Hepp."

 

What does it all mean, it is difficult to understand. However, the old investment adage is buy low and sell high and the market is high right now, especially here in Arizona where median home prices just reached a record high of $404,000.

 

If you feel based on your family situation it is time to sell, give me a call and I will help you sell your home for the best possible price.

 

If you are a buyer I can refer you to a Arizona mortgage lender or check here for down payment assistance programs and free grants in the Phoenix metro area in Arizona.

 

Rates aren’t expected to jump significantly any time soon by many industry analysts, however the future is unknown and the time to buy may be NOW.

 

Meet Jeff Masich REALTOR® and see how much your home is worth or how much you can afford

 

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Posted by

Jeffrey Masich, Associate Broker, REALTOR®, MBA, GRI, BS Accounting

HomeSmart

Scottsdale, Arizona

JeffMasich@ArizonaHomesLand.com

http://ArizonaHomesLand.com

480-242-6500

 

 

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