Home prices are on the rise in 85% of the nation’s metro areas. The first quarter statistics are the best in seven years and they’re pushed by low mortgage rates and a labor market that is growing stronger.
The National Association of Realtors said the median price of a single-family dwelling rose in 148 of the 174 areas it measures. Price gains of 10% or more were registered in 51 of those areas. In the fourth quarter of 2014 that number was 24.
Prices — however — dropped in 25 of the 174 areas.
The low cost of borrowing continue to make homeownership or home changing affordable to buyers. The average fixed mortgage rate is 3.71 through April. It was 4.36 a year ago in April of 2014.
Fannie Mae predicts the 2015 mortgage rate will average 3.9% and that’s down from 4.2% last year.
The median price for a single-family home from January through March hit $205,200. That’s up 7.4% from the first quarter of 2014. Experts expect prices to go up an average of 5.9% this year compared to 5.7% in 2014.
Sales of existing homes are also predicted to rise 6.8% to 5.3 million. It fell 3% in 2014.
Source link: PropertyCasualty360.com