RISMedia's Real Estate Magazine

MAR 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

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60 March 2019 RISMedia's REAL ESTATE From the fourth quarter of 2017 to the fourth quarter of 2018, home prices rose 4 percent, according to a National Association of REALTORS® (NAR) report. On an annual basis, there were higher home prices in 92 percent, or 163, of the 178 metro - politan areas in the report. Compar- ing the largest markets, the median price was $257,600. Among con - dos/co-ops, the median price was $237,900. Despite the easing gains in home prices, affordability is still tight, the report shows. To buy at the median price, and assuming a 5 percent down payment, a homebuyer would have to have an income of $62,954; assuming 10 percent, a buyer would have to have $59,640; and assum - ing 20 percent, $53,013. Although average earnings have increased nationally to $77,392, high home prices, and now, higher mortgage rates, are contributing to the cost crunch. According to the report, with af - fordability diminished, existing-home sales slid, down 1.8 percent from the last quarter and 7.4 percent from the prior year. At the close of the fourth quarter of 2018, existing for-sale inventory totaled 1.55 mil - lion—6.2 percent higher than the prior year. During the fourth quarter, the average supply was 4.0 months. Midwest Q4 Existing-Home Sales: -5.9 percent YoY Q4 Median Price: $196,900 (+1.6 percent YoY) Northeast Q4 Existing-Home Sales: -5.4 percent YoY Q4 Median Price: $286,000 (+6.5 percent YoY) South Q4 Existing-Home Sales: -5.4 percent YoY Q4 Median Price: $228,200 (+3.3 percent YoY) West Q4 Existing-Home Sales: -6.5 percent YoY Q4 Median Price: $383,100 (+1.8 percent YoY) According to the report, the most expensive markets were: • San Jose-Sunnyvale-Santa Clara, Calif. – $1.25 million • San Francisco-Oakland-Hayward, Calif. – $952,400 • Urban Honolulu, Hawaii – $812,900 • Anaheim-Santa Ana-Irvine, Calif. – $799,000 • San Diego-Carlsbad, Calif. – $626,000 The least expensive were: • Decatur, Ill. – $89,300 • Youngstown-Warren-Boardman, Ohio – $97,200 • Cumberland, Md. – $109,100 • Elmira, N.Y. – $111,400 • Erie, Pa. – $113,300 "Home prices continued to rise in the vast majority of markets, but with inventory steadily increasing, home prices are, on average, ris - ing at a slower and healthier pace," says Lawrence Yun, chief econo - mist at NAR. "Housing affordability will be the key to sustained healthy growth in the housing market in the upcoming years. That requires more home-building of moderately priced homes. Local zoning law changes, expanding construction worker train - ing programs at trade schools and promoting the use of tax breaks for developers in the designated Oppor - tunity Zones will all play an important role in assuring an adequate future supply of housing." RE For more information, please visit www.nar.realtor. Suzanne De Vita is RISMedia's online news editor. NAR: Healthier Home Prices in Q4 by Suzanne De Vita A cross the largest markets, home prices are rising, but at a healthier rate than in recent years, according to new research.

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