Home prices have been on the rise and March was no different. Median home prices are on the rise and this past month saw the largest year over year gain in a long time.
The median price of a home sold in March surged 8.9 percent compared with March 2017, according to Redfin, a real estate brokerage. It is the biggest annual increase in four years. Redfin tracks prices in 174 local markets and calculated the median home price at $297,000.
In many cases, high prices are the result of low inventory. While demand has increased or stayed the same, supply has fallen by about 12% from last year.
“Sellers are slow to list this year and we aren’t seeing enough new construction homes to fill the gap,” said Redfin’s chief economist, Nela Richardson. “If we don’t see the new listings number turn around next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year.”
What and Where?
Not all markets are affected. California and Seattle are seeing home prices surge while other markets aren’t quite back to pre-recession levels. With mortgage rates increasing across the board, some homeowners find they have less incentive to sell.
As a result, agents are taking more time to list their homes and sales are taking longer as well. New homeowners may also be scared off by the rising costs as well as interest rates. Since most sellers are looking to purchase a new home (often, a bigger one), the high costs are taking the wind out of their sales.
On the other hand, first-time home-buyers may be similarly scared off by the high costs. Therefore, younger buyers may be opting to rent longer in order to save up for that first home.
Of course, not all markets are created equal. That’s why City vs City examines housing costs at the zip-code level. By using real, local data; City vs City moves away from statewide averages and medians.
When you use City vs City to calculate your cost of living, you can be confident that you’re seeing real, local information on your zip code. Beyond housing costs, City vs City examines transportation costs, after-tax income, state and local taxes, and more.
As a result, you’ll see an accurate portrayal of your true cost of living. If you’re thinking of moving, City vs City makes it possible to compare your current cost against another zip code and see how they stack up.
If you’re looking to buy a home or move to a different city, download the City vs City app today!