A lack of housing inventory continues to stifle the housing market, making it difficult for potential homeowners to get on the property ladder, according to the latest quarterly report from the National Association of REALTORS® (NAR).
Making sense of the story
· The median existing single-family home price increased in 81 percent of measured markets.
· The NAR report cited that 145 out of 1791 metropolitan statistical areas (MSAs) had gains based on closings in the fourth quarter compared with the fourth quarter of 2014.
· There were slightly fewer rising markets in the fourth quarter compared to the third quarter, when price gains were recorded in 87 percent of metro areas.
· “Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead,” said Lawrence Yun, NAR chief economist.
· The unshakeable trend of inadequate supply in relation to the overall pool of prospective buyers inflicted upward pressure on home prices.
· As a result, homeownership continues to be out of reach for a number of qualified buyers in the top job producing, but costliest, parts of the country – especially on the West Coast and parts of the South.
· The report also stated that the national median existing single-family home price in the fourth quarter was $222,700, up 6.9 percent from the fourth quarter of 2014.