This week in real estate and housing news … your National Association of Realtors reports a trend in the current marketplace: Metro home prices continued to rise in the second quarter of 2016. Why is this significant? Well … those metro markets are the areas where all of the doom and gloom has been reported for the last few years. The metro markets are where national news outlets look to forecast the rest of the country.
Now … we always say those coastal and big-city markets don’t tell the whole story when it comes to housing. And that still holds true. But think about it: as those markets improve – and housing prices are certainly one indicator of that – then the media reports positive news, driving positive sentiment among hopeful home buyers. It’s a good place to start.
*# So which markets have improved by the largest margin? Boulder, Colorado is one hot market, where home prices rose by 18-percent. Tampa, Florida is another growing market with a 14-percent jump. The 12-to-13 percent range includes Orlando, Las Vegas and Portland, Oregon.
NAR chief economist Lawrence Yun attributes the growth to steadily improving job markets and the continuation of record-low-mortgage rates. He did caution though, that low home building activity is failing to keep up with demand, pushing those home prices higher at a rate above income growth. So we’ll keep an eye on that trend to see if it’s an issue.