The pandemic and its associated aftermath (high unemployment, tank economy, closed storefronts and a roller coaster exchange, to name a few) failed to dampen sentiment in the residential real estate market as 96% of metro areas are affected, according to a report the National Association of Realtors reported an increase in house prices in the second quarter.
According to the report, 174 of 181 metropolitan areas surveyed saw price increases in the second quarter, averaging 4.2% year over year. While it was up, earnings were below the 7.7% increase over Q1 2020.
"Property prices have held up well, largely due to the combination of very strong demand for housing and limited supply of properties for sale, ”NAR chief economist Lawrence Yun said in a statement. “Historically low inventory levels reinforce and in some cases even increase priceshow. ”
While low mortgage rates and a desire to get out of some major metropolitan areas have increased the number of potential buyers, the shortage of new home stocks has pushed prices up further, according to Yun.
"Unless more new homes are built, some buyers may miss or delay the opportunity to buy a home," he said. "In the meantime, prices are showing no signs of falling."
The price for this single family home is a national average of $ 291,300. However, the location of the house in question significantly affects the costs.
For example, Topeka, Kansas has an average home price of $ 147,000, while Springfield, Illinois is $ 153,000.
At the other end of the spectrum, the average home value of San Jose, California is an average home value of $ 1.05 million.
It is noteworthy that the most expensive areas such as San Jose, Honolulu, San Francisco, and San Diego saw less percentage increases than the national average.
Higher density areas such as New York City and Washington, DC saw lower buyer activity compared to smaller, more dispersed cities.