All-time high for prices says RealtyTrac
The median sales price of homes has reached a new high, surpassing the 2005 peak by 1 per cent.
Data from RealtyTrac shows that single family homes and condos sold for a median price of $231,000 in June 2016, up 6 per cent from the previous month and up 9 per cent from a year ago. That price is a new all-time record, beating the $228,000 recorded in June 2005.
Median sales prices increased nationwide for the 52nd consecutive month in June and 30 per cent of metros recorded all-time highs.
“The all-time home price highs nationwide an in many local markets are being enabled by historically low mortgage rates — which are falling once again this year,” said Daren Blomquist, senior vice president at ATTOM Data Solutions (the new parent company for RealtyTrac.)
Southern states lead housing market improvement
Two more Southern states are nearing their historic benchmark levels of housing market activity according to data from Freddie Mac.
The corporation’s Multi-Indicator Market Index shows that Mississippi and Maryland join 32 other states and DC in being within range of benchmark levels. Hawaii (97.8), Oregon (97.1), Utah (96.9), Montana (96.6) and Colorado (96.4) are the closest to achieving their historic levels of 100.
"Nationally, MiMi in May registered 85, a 7.3 percent year-over-year increase and the 49th consecutive month of year-over-year increases. Many of the Western markets continue to see strong home sales. However, it's the Southern states where MiMi continues to register some of the strongest gains buoyed by an improving employment picture,” said Freddie’s deputy chief economist Len Kiefer.
Seventy-five per cent of metros are also returning to their historic benchmarks led by Honolulu, HI (99.8), Salt Lake City, UT (100.2), Los Angeles, CA (99.6), Nashville, TN (101.5), and Portland, Oregon (98.4).
Americans still rank owning a home as a priority
Owning a home is still very much part of the American Dream with 4 out of 5 respondents telling the National Association of Home Builders that it’s a priority.
“The survey shows that most Americans believe that owning a home remains an integral part of the American Dream and that policymakers need to take active steps to encourage and protect homeownership,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill.
A home was rated a good or excellent investment by 82 per cent of respondents and young Americans still consider home ownership to be important with 81 per cent wanting to buy a home.
More than a third of respondents want to buy within 3 years and 46 per cent say now is a good time to buy, twice the number who say it is not.