Not only is the housing recovery well under way, the median home value will rise 15% in the next three years, according to the National Association of Realtors’ chief economist.
"Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home-price measures are showing sustained increases," Lawrence Yun told attendees at the 2012 Realtors Conference and Expo in Orlando, Fla.
One reason for the rising prices is the falling inventory -- or supply of available homes for sale and underbuilding in recent years -- which is fueling demand for new construction, perhaps beyond what builders can produce.
"Unless building activity returns to normal levels in the next couple years, housing shortages could cause home prices to accelerate, and the movement of home prices will be closely tied to the level of housing starts," Yun said.
Friday, November 16, 2012
Sunday, November 11, 2012
HOUSING MARKET RECOVERY: Third quarter home prices and home sales both showed strongest growth since 2006, according to the latest report by the National Association of Realtors. The national median existing single-family home price jumped 7.6 percent from a year ago, the strongest year-over-year increase for any quarter in six years. Inventory -- along with interest rates -- remains low, spurring a more competitive housing market with multiple offers and bidding wars once again.