Hiking up home prices
Home prices have hit a new peak. According to new data, U.S. house prices just experienced their biggest quarterly increase in four years.Verify your new rate (May 31st, 2020)
Home prices log annual uptick
According to the Q2 2019 U.S. Home Sales report from ATTOM Data Solutions, the median home price clocked in at $266,000 last quarter — up more than 10 percent from Q1 and 6.4 percent over a year ago. It’s the largest quarterly jump in home prices since early 2015 and the third-biggest since the housing crash.
Prices jumped the most in Atlantic City, New Jersey, which saw a 16 percent uptick over the year. Other cities with over-10 percent hikes were Boise City, Idaho; Chattanooga, Tennesse; Mobile, Alabama; and Madison, Wisconsin.
In Greeley, Colorado, house prices are now 74 percent above their pre-recession peak, while Shreveport, Louisiana’s are 81 percent above.
Fortunately, the drastic jumps probably aren’t here to stay. As Todd Teta, ATTOM’s chief product officer explains, “In looking at historical trends, the second quarter of every year has always shown a quarterly increase, going as far back as 2005. So, with mortgage rates dipping to new lows, it’s no surprise that people were wanting to buy a home, even if prices were at their peak. We expect to see milder home prices in the coming quarters.”
Homeownership tenure increases in step
The report also shows that homeownership tenure is up as well. The average home seller last quarter lived in their home for more than eight years, marking a 3 percent jump for the quarter and a 4 percent increase over 2018. Before the housing crisis, homeowners averaged just 4.21 years in their homes before selling.
Homeownership tenure was longest in San Francisco (over 10 years, on average), and in Portland, Oregon, where residents stay more than nine years.
Merced, California and Colorado Springs, Colorado saw their homeownership tenures decrease over the year.Verify your new rate (May 31st, 2020)
Get today’s mortgage rates
Want to buy a home before prices rise further? Then shop around and see what mortgage rates you qualify for today.Verify your new rate (May 31st, 2020)