Home affordability being impacted by rising real estate prices

The National Association of Realtors (NAR) recently released their quarterly report and the common theme throughout the country was rising home prices. As a matter of fact, every metro area tracked by the NAR across the country saw home prices increase year-over-year.  In fact, 65% of metros saw double-digit price growth since last year, compared to only 15 metro areas that saw this kind of growth in the second quarter.

Price growth across the regions

Overall, the U.S. median home price for existing single-family homes increased 12% year-over-year to $313,500. Regionally, here’s the breakdown on growth:

– West: +13.7%
– Northeast: +13.3%
– South: +11.4%
– Midwest: +11.1%

Although low mortgage rates will continue to benefit buyers, there is ongoing concern that the benefits achieved will be offset by rising home prices. In particular, this will continue to present obstacles for first-time home buyers. As always, buyers should focus on saving money for a down payment while also not accumulating any new debt prior to a potential home purchase.

If you are looking to purchase a home in South Florida, contact us today for a free, no-obligation consultation. It is always beneficial to have a well-planned strategy when embarking on the home buying process.

By natasha@livesouthfl.com

REALTOR® with Live South Florida Realty, Inc.