Home prices on upward trend
Home prices in the U.S. are on an obvious and perhaps sustainable uptrend, the National Association of Realtors (NAR) said in a recent report.
According to the NAR, the median existing-home price on a national level (all housing types) jumped 7.9 percent year-over-year, to $182,600 in May.
This is the third consecutive month of yearly price increases, which is the first time three consecutive months of gains have been seen since March to May of 2006.
“Some of the price gain results from a shrinking share distressed homes in the sales mix,” Lawrence Yun, NAR chief economist, said in a statement.
Distressed homes, which include foreclosures and short sales, totaled 25 percent of May sales, which is a decline from 28 percent in April and 31 percent in May 2011.
“We are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage,” Moe Veissi, NAR President, said in a statement.
Home prices up in all four regions
Home prices saw increases in all four major U.S. regions, the NAR said:
- Northeast: The median price of $250,700 is 3.8 percent year-over-year.
- Midwest: The median price of $147,700 is 6.4 percent year-over-year.
- South: The median price of $159,700 is 7.8 percent year-over-year.
- West: The median price of $233,900 is 13.4 percent year-over-year.
“The sharp price increase in the West results largely from more sales at the upper end of the market,” Yun said.