US Housing Market Enjoys Largest Monthly Gains This Year
With 16 consecutive months of appreciating values, the US housing market saw its largest monthly gains in residential home sales this year in August.
As values increase throughout the nation, so too have sales figures. Interestingly, values are soaring and, with standard supply and demand trends, there are not enough homes to go around. Buyers can't find what they want, while some buyers are being priced out of the market. Because prices are being pushed up, many first-time home buyers cannot qualify for home loans at the current rates, but values continue to rise.
Despite national increases, several markets showed annual sales decreases but value gains. California dropped 17 percent in sales but increased 31 percent in values, Arizona down 11 percent and up 21 percent in value, Nevada down 7 percent and up 27 percent, and Georgia dipped 2 percent in sales volume but jumped 20 percent in home value.
These increases in home values, dips in affordability, and increases in US home sales volume have also increased the amount of all-cash buyers coming to the table. Because supply is low and competition between buyers is fierce, all cash offers become more enticing. Some areas have even shown over 80 percent increases in all-cash purchases.
Some of the nation's major cities that have seen the greatest increases in value, from the previous year: Los Angeles up 29 percent, Atlanta up 24, San Francisco 35, and Riverside/San-Bernardino was up 26 percent.
Does this trend in the US housing market look familiar in your area? Are you seeing increased values as well? Let us know your thoughts and local perspectives in the comment section below.
Photo Courtesy of reallyboring’s Flickr