The national median home price rose to $203,500 in the second quarter of 2013, according to the National Association of Realtors. This 12.2 percent year-over-year gain is the largest since 2005, when it surged 13.6 percent.
The national median home price rose to $203,500 in the second quarter of 2013, according to the National Association of Realtors. This 12.2 percent year-over-year gain is the largest since 2005, when it surged 13.6 percent.
However, NAR adds, despite rising prices in 87 percent of measured markets and higher mortgage interest rates, most buyers are still well positioned to afford a home in their area based on income and regional median home price data.
"There continue to be more buyers than sellers, and that is placing pressure on home prices, with multiple bids common in some areas of the country," Lawrence Yun, NAR chief economist, said in a statement. "Higher interest rates are now causing sales to level out, but the tight supply conditions look to be with us for the balance of the year in most of the country. Areas with tighter supplies generally are seeing the strongest price growth, including markets such as Sacramento, Atlanta, Las Vegas, Naples, San Francisco and Los Angeles."
At the end of the second quarter of 2013, there were 2.19 million existing homes for sale, representing an average 5.1-month supply. This is down 7.6 percent from the close of the second quarter of 2012, which saw a 6.4-month supply.
"Banks now have an incentive to increase loan origination, which means they may dial back overly restrictive mortgage lending standards that have been in place since the crash," NAR President Gary Thomas said in a statement. "We are also optimistic that proposed federal regulations will ensure that creditworthy borrowers continue to have access to safe, affordable options for buying a home."