Home Prices Rising at a Steady Clip

The recent NAR report revealed that severely lacking inventory across the country drained sales growth and kept Home Prices Rising at a Steady Clip in nearly all metro areas. Home prices rose 5.3% over the last quarter across all metros. he National Association of Realtors (NAR) released their latest Quarterly Metro Home Price Report last week.

Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report:

“Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability conditions.”

Home Prices Rising at a Steady Clip

What this means to sellers

Rising prices are a homeowner’s best friend. As reported by the Washington Post in a recent article  post:

“The rise in median sales prices has made current homeowners much more willing to sell their home, and that willingness is one of the main drivers behind the inventory that does make it on to the market. While it hasn’t been enough to meet demand, it has made the situation much better, compared with even three or four years ago.”

What this means to buyers

In a market where prices are rising, buyers should take into account the cost of waiting. Obviously, they will pay more for the same house later this year or next year. However, as Construction Divereported, the amount of cash needed to purchase that home will also increase.

“These factors have created a situation where the market keeps moving the goalposts in terms of the down payment necessary for first-time homebuyers to get into a home.”

Bottom Line 

If you’re thinking of selling and moving down, waiting might make sense. If you are a first-time buyer or a seller thinking of moving up, waiting probably doesn’t make sense.

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Who You Choose Makes a Difference When Buying or Selling a Home

5 Star Zillow Premier Agent Review:

John Sposato and his team are absolutely amazing! Extremely responsive. John was very aware of our needs and likes so our pool of homes to look at all really had the chance to be “The One”. John has been our realtor from when we purchased our original home back in 1999. He negotiated a great buy then and has gotten us our ask price on one sale, which was the highest per square foot purchase in the area at the time, and darn near asking price on our last sale, before this purchase. As he has been for 25 years, John and his team, is who I will be looking to for any future purchases myself and who i will be referring out when asked. Thank you again to John and his team! Your the best! Those thinking of real estate in the Phoenix Market would be wise to give John and his team a call. You will not be disappointed! I assure you that! ~ Ty Wilcox

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