Home-Price Growth Ticks Upward Slightly in Q4, Says NAR

The majority of metropolitan areas experienced steady, but slightly stronger price growth in the fourth quarter of 2014, according to the National Association of Realtors.

The median existing single-family home price increased in 86 percent of markets, with 150 out of 175 metro areas showing gains between the fourth quarter of 2013 and the fourth quarter of 2014. Twenty-four areas saw lower median prices year-over-year.

Compared with the third quarter of 2014, the fourth quarter saw more rising markets. Price increases were recorded in 73 percent of metro areas. Of those, 24 areas saw double-digit increases. In the third quarter, 16 metro areas saw double-digit increases.

“Home prices in metro areas throughout the country continue to show solid price growth, up 25 percent over the past three years on average,” said Lawrence Yun, NAR chief economist, in a statement. “This is good news for current homeowners but remains a challenge for buyers who are seeing home prices continue to outpace their wages.”

The national median existing single-family home price in the fourth quarter was $208,700, up 6 percent from the fourth quarter of 2013.

At the end of the fourth quarter, there were 1.85 million existing homes available for sale, which is lower than the 2.01 million homes for sale during the fourth quarter of 2013.

The average supply during the fourth quarter of 2014 was 4.9 months, below a healthy supply of 6 to 7 months.

“Despite affordable housing conditions in most of the country, an upward pressure on home prices still persists in some metro areas—particularly in the West—where the current supply of new and existing-homes for sale is failing to keep pace with overall demand and growing populations,” said Yun. “Unless homebuilders significantly boost construction, housing supply shortages could develop and lead to further price acceleration this spring.”