Home Prices Are Rising, Again

Have you heard the bad news? Well if not, Home prices continue to rise at a very steady rate according to a CoreLogic report and a recently compiled government study.

Nationally the average price of a home rose by over 5% as of the end of August 2016 which is up from the 5% yearly gain as reported for July 2016. Looking at the yearly trend, home prices rose more than 6% compared to the same time period in 2015, however the growth was not consistent across all noted regions. Growth ranged from 3% to more than 7% in the respective Mid-Atlantic and Pacific regions. This increase was driven by housing growth in our major cities such as Denver and Seattle where they are rising fastest.

We can expect home prices to continue to rise as the country’s economic outlook continues to look up. Is this the beginning of another housing “adjustment/crash”? Maybe so, maybe not. We will have to wait and see. However, as long as wages continue to rise and interest rate remain low (which they won’t) the result is a balanced housing market. Just remember that as the price of purchase housing increases so does housing in the rental markets. (We discussed this last week in another posting.)

If you are ready to take advantage of the current market and purchase a home before interest rates begin to soar along with all home sales prices you should call me now @ 832.767.9375. Just ask for Brian and let’s get the ball rolling before it is too late.