Low Housing Inventory Causes Prices to Accelerate

Reprint from Elk River Star News & Anoka County Shopper, "Real Estate News by Stephanie Danielson" - 3/5/16 issue.

The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price report in February of 2016.  The report revealed that home prices are not only continuing to rise but that the increases are accelerating.  Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report"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.”

Percentage increases of home prices for the last two quarters:  The national median existing single-family home price in the fourth quarter was $222,700, up 6.9 % from the fourth quarter of 2014 ($208,400).  The median price during the third quarter of 2015 increased 5.4 % from the third quarter of 2014.

Bottom Line:  If you’re thinking of selling and moving down, waiting might make sense. But if you are a first time buyer or a seller thinking of moving up, waiting probably doesn’t make sense.

“If you are thinking of buying, selling, renting your home, or leasing real estate this year we’d love to hear from you!  Working with experienced professionals can boost your profits!”

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