One of the reasons for near-term economic optimism is the nation’s housing market. Thanks in part to remarkably low mortgage rates, buyer interest remains high, helping to drive home prices higher and spawn positive wealth effects.
According to recently released data from the National Association of Realtors, the median price for an existing, single family home rose in eighty seven percent of the nation’s one hundred and seventy eight metropolitan areas during the first quarter compared to one year ago.
Twenty eight of these metropolitan areas generated double-digit year over year increases in home prices during the year’s first quarter. These gains tended to be concentrated in smaller areas like Rockford, Illinois and Youngstown, Ohio.
Median home price nationally has risen by more than 6% over the past year. The pace of home price increases has slowed a bit recently, but that was largely predicted. As indicated by the Wall Street Journal, buyers are increasingly wary of rising prices.
The nation’s most expensive housing markets remain concentrated in California, led by the San Jose area with a median price approaching one million dollars and San Francisco, where median price is approaching eight hundred thousand dollars.
