Home prices nationwide has increased by 6.2% from the second quarter of 2016 as the price of $255,600 hits peak levels. The new report by the National Association of Realtors (NAR) indicates that as a result of low supply of housing, prices has remained strong and grown in 87 percent of measured markets. According to the report, sale prices have increased in 154 out of 178 metropolitan areas from the same quarter last year.
Total existing-home sales which includes single family and condos, slipped 0.9 percent to a seasonally adjusted annual rate of 5.57 million in the second quarter from 5.62 million in the first quarter. The sales figures are still 1.6 percent higher than the 5.48 million pace during the second quarter of 2016. Both of the figures aboves indicates that there is a need for newly constructed projects. NAR chief economist stated “The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership”.
Of significance in the New York City region and the Northeast, total existing-home sales in the Northeast rose 1.3 percent in the second quarter. The median existing single-family home price in the Northeast was $282,300 in the second quarter, up 3.2 percent from a year ago. Metro area condominium and cooperative prices, showed the national median existing-condo price was $239,500 in the second quarter, up 5.4 percent from the second quarter of 2016 ($227,200). Eighty-seven percent of metro areas showed gains in their median condo price from a year ago. A recent report by the Real Deal Magazine indicates that up to forty percent (40%) increases in Flushing, Queens alone. This will affect NYC property management companies as rents are affected by existing home sales prices and mortgages.