According to the latest quarterly report by the National Association of Realtors (NAR), nearly every metro area in the nation saw a rise in home prices during Q2 2020. Specifically, NAR revealed that median single-family home prices in 96% of America’s measured market metro areas rose (year-over-year).
The 174 of 181 metro areas that experienced this uptick in home prices is ironically represents the exact same percentage uptick that was experienced during the first quarter of 2020. According to NAR’s data, the average existing single-family home price tag during the second quarter of 2020 came in just around $291,300. When measured on a year-over-year basis, this price tag represents an uptick 4.2%. While this appreciation is welcome news, it does pale in comparison to the pre-pandemic growth rate (7.7%) that was seen in just last quarter (the first quarter of 2020).
NAR Chief Economist Lawrence Yun provided his expert insights on the current state of the housing market, specifically regarding what is happening with home prices: “Home prices have held up well, largely due to the combination of very strong demand for housing and a limited supply of homes for sale. Historically-low inventory continues to reinforce and even increase prices in some areas.”
Among those metro areas that experienced the most growth were Huntsville, Alabama (13.5%); Memphis, Tennessee (13.4%); Boise, Idaho (12.6%); Spokane-Spokane Valley, Washington (11.8%), Indianapolis, Indiana (10.8%), and Phoenix, Arizona (10.2%).
Yun further commented on the report’s findings, pointing to what is most likely in store for the days ahead as record-low mortgage rates continue to attract new buyers: “Unless an increasing number of new homes are constructed, some buyers could miss out on the opportunity to purchase a home or have the opportunity delayed. In the meantime, prices show no sign of decreasing.”