According to the National Association of Realtors (NAR) revealed single-family home prices rose in 96% of metros studied during Q1 2020.
The report found that 174 of 181 of the nation’s metro areas studied reporting sales price elevations. This increase is a 2% uptick compared to Q4 2019. For an idea of those exact price comparisons as a point of reference, the median price for an existing single-family home in the United States during 2019 was $254,900, while the median price in Q1 2020 was $274,600—a rise of 7.7%.
Of the metros studied, 46—most of which were located in the western and southern regions of the United States—experienced an increase in home prices in the double-digits. Among these top performers were Boise City, Idaho; Eugene, Oregon; and Colorado Springs, Colorado—exact percentages being 18.1%, 14.5%, and 14.4%, respectively.
“The first quarter price jumps mostly reflect conditions prior to the coronavirus outbreak and show the strength of the housing demand prior to the pandemic,” NAR’s Chief Economist Lawrence Yun said.
Yun added: “Even now, due to very limited listings, home prices are showing no signs of buckling.”
Yun also pointed to the 8% rise on a year-over-year basis in the average of existing homes prices that occurred this past March—coupled with strong demand from buyers and a severely limited inventory—accounted for the uptick in home prices.
“Supply is extremely limited, and there are simply not as many homes for sale to meet the demand among potential buyers,” he said.
He then explained what would need to happen next for the housing industry and economy to move forward in the best way possible: “More supply and more listings are needed to provide faster recovery for the economy. The fast-rising home prices are not healthy, so more homebuilding needs to take place as the economy begins to reopen.”
Yun ended with this telling commentary on those most poised to buy now: “Mortgage rates are at historic lows and those with secure employment will be attracted to the market.”