Chicago, IL (PRWEB) May 13, 2014
The National Association of Realtors (NAR) published a report on May 12th showing that home price gains are slower recently. Peoples Home Equity was intrigued by the release as the lender is many times, writing about home prices to its readers.
In the 1st quarter of 2014, Median existing single-family home prices were recorded at $191,600 increased in 125 of 170 statistical areas (74%). Of these areas, 37% experienced double digit growth. Meanwhile 45 of these areas “recorded lower median prices.” Lawrence Yun, chief economist at the NAR said “The cooling rate of price growth is needed to preserve favorable housing affordability conditions in the future, but we still need more new-home construction to fully alleviate the inventory shortages in much of the country.” Peoples Home Equity agrees that inventory remains a concern. Many home buyers yearn for more real estate inventory as market options are limited.
Readers should know that the NAR found the five most expensive housing markets in the first quarter were "San Jose, Calif., metro area, where the median existing single-family price was $808,000; San Francisco, $679,800; Honolulu, $672,300; Anaheim-Santa Ana, Calif., $669,800; and San Diego, where the median price was $483,000." Peoples Home Equity was not surprised to see the majority of these metro areas in California as the tech market has been booming attracting lots of investment into the area and paying higher salaries to individuals. This employment action translate into more offers and higher bids on properties in the state, thus increasing the prices on California real estate.
As for the five lowest costing metro areas included: "Youngstown-Warren-Boardman, Ohio, with a median single-family home prices of $64,600 in the first quarter; Decatur, Ill., $69,600; Toledo, Ohio, $72,100; Rockford, Ill., $73,100; and Cumberland, Md., at $81,400." Interestingly, half of these low costing areas reside in Illinois or Ohio.
The NAR noted that areas which experienced the largest percent rise in prices tended to be smaller areas. Peoples Home Equity found this point valid as a May 5th release titled “Chicago Suburbs Show Mixed Results In Home Sales And Prices” mentioned many small suburban areas of Chicago that experienced very large price increases (such as Lisle, IL) in the first quarter of 2014.
Apart from price, the NAR stated that existing home sales fell 6.9% from 4.94 million in the fourth quarter to 4.6 million in the first quarter. Peoples Home Equity attributes this to the usually cold and long winter.
Peoples Home Equity is still looking forward to a continued rise in home sales this spring and summer as leading sales indicators drawing a positive outlook.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026