The National Association of Realtors (NAR) is reporting the strongest national sales growth in a decade for the first quarter of 2017. They are also reporting that as a result of this sales growth, inventory levels are down causing significant growth in the sector. The report indicates that the national median existing home price has increased 6.9% from the first quarter of 2016 to $232,100.
In metropolitan areas, single-family home prices last quarter increased in 85 percent of measured markets, with 152 out of 178 metropolitan statistical areas according to NAR. Only Twenty-five areas (14 percent) recorded lower median prices from a year earlier.
NAR chief economist Lawrence Yun states:
“continual supply shortages ignited faster price appreciation across the country in the first quarter. “Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” he said. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in almost two years.”
Mr. Yun goes on to say:
“several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp up in new home construction. This is why many of these areas – in particular several parts of the South and West – are seeing unhealthy price appreciation that far exceeds incomes.”
Total existing-home sales, including single family and condos, climbed 1.4 percent to a seasonally adjusted annual rate of 5.62 million in the first quarter. This is the highest level since 2007 at 5.66 million and is 5% highest than the same quarter in 2016.
Of significance in the Northeast existing-home sales in the area declined 2.2 percent in the first quarter. This is still 4.2% higher than the same period in 2016. The median existing single-family home price in the Northeast was $255,000 in the first quarter, up 2.2 percent from a year ago.
We expect considerable opportunities in New York City property management as home prices continue to appreciate.