Home prices and sales both showing positive growth

Home prices and home sales both showed strong annual growth during the third quarter, 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, to $186,100 — the strongest year-over-year increase for any quarter since first-quarter 2006, when prices were up 9.4 percent from the previous year.

“We expect fairly normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to meet the needs of our growing population and household formation,” Yun said.

While NAR attributed some of the price gain to a reduction in the percentage of distressed home sales — only 23 percent of existing homes sold in second-quarter 2012, down 30 percent from a year previous — the trade group stated that “higher prices significantly reflect a market recovery.”

Housing affordability numbers also fared well for the housing market. With a third-quarter national median family income of $61,700, NAR calculated that with a 5 percent down payment, a household would need only $40,900 to afford a home at the third-quarter national median price, assuming a 4 percent mortgage interest rate and 25 percent of gross income devoted to mortgage principal and interest. That home affordability income threshold drops as the down payment percentage rises.

Tags: , , , ,

1 Response to "Home prices and sales both showing positive growth"