Evidently, 48 states showed year-over-year gains in April.
Meanwhile, home prices also showed month-over-month gains between March and April.
As a result, home sellers from California to New York are feeling increasingly confident about entering their local real estate markets, hopeful about the price they may be able to get for their property.
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Home Sellers Encouraged by National Home Prices
According to CoreLogic, home prices rose 3.2 percent between March and April – a sizeable increase from the 1.9 percent gain between February and March.
Nevada led the nation in gains, with home prices there leaping 24.6 percent from 2012.
Rounding out the top five list were:
- California (19.4 percent)
- Arizona (17.3 percent)
- Hawaii (17 percent)
- Oregon (15.5 percent)
Experts say that a low inventory of available homes for sale has caused home prices to rise – at least in part.
After all, as more buyers have entered the market hoping to take advantage of near-record low mortgage rates and depressed home values, the proportion of buyers and available homes for sale has become increasingly skewed.
In fact, the total number of homes for sale is 14 percent lower than it was last year.
And as any Economics 101 class will tell you, when demand exceeds supply, prices begin to rise.
This is driving even more buyers to the market, hoping to secure a great deal before prices rise even more.
Experts are now calling on more homeowners to list their property on the market, emphasizing that these individuals are likely to be pleased with the outcome of the sale.
Fast Facts on the National Housing Market
But before they enter the market, home owners should recognize the importance of aggressively pricing their property.
By accurately pricing their property at fair market value, it’s more likely that home owners will be able to sell their property quickly, instead of watching it languish on the market.
In order to price their home, it helps to be aware of recent activity on the market. To that end, here are some recent national housing market statistics that should help:
- The National Association of Realtors recently reported that sales of previously occupied homes reached a 3.5 year high in April.
- In April, the total number of signed home purchase contracts rose to its highest level in three years.
- Home builders are gaining confidence in the market, with building permit applications increasing in April to their highest level in almost five years.
- In 94 of the 100 largest U.S. cities, home prices increased during the month of April. During the previous month, that only happened in 88 cities.
- Los Angeles and Phoenix saw the biggest price gains in those 100 cities, with both seeing a 19.2 percent year-over-year increase in home prices.
- Atlanta and Riverside-San Bernardino were runners-up in terms of price gains. Both saw 16.5 percent year-over-year increases.
- Dallas saw the third highest price gain in the country, with a 10.2 percent increase.
Although these home price gains are quite encouraging, it’s important to note that prices nationwide remain about 22 percent lower than their April 2006 peak.
Barrington Illinois Luxury Housing Market
The national market is always a good start but we should be mindful that averages are made up of hundreds of locations and what matters to Barrington buyers and sellers is what’s happening in our community. This is especially true in the luxury market which is always slow to get going after a market decline. I write about the highest sale in Barrington regularly to get a feel for the luxury sales. During the month of May the highest sale was under $1 Million, nothing to really write home about considering there are 125 listings price above $1 Million.
It’s not all doom and gloom though. We have had 14 sales so far this year above a million. That’s about 3 per month. 10 more are under contract. That’s 24 so far. To give this perspective, in 2012 there were only 32 sales at this price and above in total. So we are moving in a positive direction.
Keeping an Eye on the National Housing Market for You
Check back here soon for regular updates on the state of the national housing market, which is sure to have an impact on local real estate markets all across the country.
Whether you’re thinking of buying or selling a piece of real estate, the information we provide will better prepare you for navigating the market effectively.
Contact me if I can be of assistance with your real estate needs in Barrington Illinois. 847.363.3686.