Existing Home Sale Prices up in 89% of Metropolitan Areas

The National Association of Realtors (NAR) tracks existing home sales across the country. NAR is reporting rising prices across the nation, with 133 out of 150 metro areas showing price increases in the first quarter of this year. They also report that total existing home sales are at their highest since the fourth quarter of 2009.

The price increases in 133 of 150 metropolitan areas showed the best year-on-year performance in seven years. Only 17 areas had price declines, still far better than the same period in 2012, with only 74 areas showing price increases that quarter. Other data noted includes:

• Inventory is expected to be constrained and contributing to rising prices well above the inflation rate.
• Median existing single family home price in the first quarter was $176,600, an 11.3% increase from the $158,600 median price in the first quarter of 2012.
• At the end of the first quarter of this year, there were 1.93 million existing homes available for sale, 16.3 percent below the 2.32 million available in the fist quarter of 2012.
• Total existing home sales, including single family and condo sales, were up over the same quarter a year ago by 9.8% at 4.94 million units. This was the highest level since the fourth quarter of 2009, when sales hit 4.95 million.

While some analysts are stating that many markets are returning to “seller market” status, there are still good deals out there for buyers who do the research to locate them and negotiate with confidence.

A good bit of the current buying pressure, other than the 20% or so from investors, is coming from the low interest rates making homes more affordable for the average buyer. However, they still must get that mortgage loan, and this requires the home be in livable condition and not in need of major work. This gives investors an edge, in that they can locate the homes on the borderline for mortgage approval and negotiate based on the cost to rehabilitate the unit.