Despite an inventory shortage, there has been an encouraging boost in existing home sales for the third quarter of 2015. This has kept prices rising throughout the country and kept price appreciation slowing to a healthy pace. Thanks to favorable mortgage rates and improvements in the economy, purchasing demand increased. Even though price growth reached unhealthy levels in certain markets, some amount of moderation occurred.
The low house inventory elevated prices over where many buyers could afford. From one year ago, the country’s third quarter median single-family home price rose 5.5 percent to $229,000. However, this number had the potential to reach higher levels, especially with the favorable economy and decline in mortgage rates.
In the third quarter, the most expensive housing markets included San Jose, San Francisco, Anaheim, Honolulu, and San Diego. The least costly markets included Cumberland, Maryland, Youngstown, Ohio, and Elmira, New York. The areas with the fastest appreciation were located in the South. This area enjoyed a strong job market, many vacation buyers, and a bit of new construction.
The third quarter ended with 2.21 million existing homes for sale. This was lower than the amount available one year ago. Real estate experts explain potential buyers outweigh inventory. For this time of year, houses are quickly going under contract. If you are selling your home, this is good news. However, you may be worried your new home search will be limited. Eventually, more properties will become available so that it will be easier to find the perfect new house.
