Apr 7, 2017
A seller’s market continued to advance nationwide with home prices on the move upward in 2016 from coast-to-coast.
That’s the conclusion from the S&P CoreLogic Case-Shiller Indices which revealed upward momentum for the year ending in January was the strongest in 31 months with prices climbing nearly six percent, a rate that far outstripped income growth over the same period.
According to Mansion Global, a website that covers the upscale real estate market, analysts continue to cite a shortage of homes on the market as the genesis of inflation in the cost of buying a home. Meanwhile, a more robust jobs picture is diverting greater numbers of people onto the road to home ownership.
Home inventory in the final month of 2016 was the lowest it has been since 1999, the year the National Association of REALTORS began keeping track of the figure. Some observers feel the lack of supply could be pricing first-time homebuyers out of the market.
The main consolation for buyers is relatively generous math for borrowers in search of manageable interest rates which have been gently climbing into the low four percent range from 3.5 percent late last year. Despite its upward trajectory, the figure remains attractively low by historical norms.
Meanwhile, the experts wait to see where the market can find equilibrium and end the imbalance between earning power and homebuying affordability.
“Eventually, it will stop,” said David Berson, chief economist for Nationwide Insurance, “and we all hope it will stop by house price gains slowing.”