RealtyTrac: Home Prices Hit New Peaks In 35% Of Markets This Year

Posted by Patrick Barnard on December 04, 2015 No Comments
Categories : Residential Mortgage

Although home prices in a majority of U.S. markets are yet to return to pre-crisis levels, about 35% of markets reached new, all-time-high price peaks this year, according to RealtyTrac.

The firm's October 2015 U.S. Home Sales Report shows that among 94 major metro areas tracked, 33, or 35%, have now reached new, all-time home price peaks.

The report shows that the median sales price of a single-family home in October was $207,500, an increase of 1.0% compared with September and up 10.0% compared with October 2014.

It was the highest year-over-year increase since February 2014. What's more, it was the 20th consecutive month that the median home price increased on a month over month basis and the 44th consecutive month that the average price increased on a year-over-year basis.

Markets that saw the biggest increases in home price appreciation so far this year include Detroit (up 29%); Charleston, S.C. (up 17%); Denver (up 17%); St. Louis (up 16%); Bridgeport, Conn. (up 15%); Cape Coral, Fla. (up 15%); Palm Bay, Fla. (up 15%); Modesto, Calif. (up 14%); Raleigh, N.C. (up 14%); Washington, D.C. (up 13%); Philadelphia (up 13%); and Ocala, Fla. (up 13%).

Despite the major gains in appreciation during the past four years, the median sales price in October was still 9% below the peak of $228,000 in July 2005.

‘Home price appreciation did not go into hibernation in October even as the housing market entered the typically slower fall season,’ says Daren Blomquist, vice president of RealtyTrac, in a statement. ‘More than one-third of the nation's major housing markets have now reached new home price peaks this year, and nearly 90 percent of markets posted an annual increase in home prices in October. Home sellers are sitting pretty in this market, realizing an average profit-since-purchase of 16 percent – the highest in any month since December 2007, on the cusp of the Great Recession.’

On the other hand, rising home prices are having a significant impact on affordability.

To view the full report, click here.

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