Home prices reached peak levels in majority of metro areas in fourth quarter 2016

A recent study from the National Association of Realtors (NAR) saw an uptick in home price gains in the final three months of 2016. Strong sales and record low housing supply inventory drove home prices higher.

The NAR said the median existing single-family home price increased in 89 percent of measured markets, showing sales price gains in the fourth quarter of 2016 compared with the fourth quarter of 2015. The other 11 percent recorded lower median prices from a year earlier.

There were more rising markets in the fourth quarter compared to the third quarter of 2016, when price gains were recorded in 87 percent of metro areas. Seventeen percent of metro areas in the fourth quarter experienced double-digit increases – an increase from 14 percent in the third quarter.

For all of 2016, an average of 87 percent of measured markets saw increasing home prices, up from the averages in 2015 (86 percent) and 2014 (75 percent). Of the 150 markets the NAR has tracked since 2005, over 50 percent now have a median sales price at or above their previous all-time high. Fortunately for homebuyers, mortgage rates have moderated and remain at historically low levels.

Are you ready to explore your local housing market? Travis Credit Union offers home loan options! Our friendly and knowledgeable mortgage loan consultants can walk you through the home-buying process. Get started today by visiting our Home Loan Center, stopping by a branch or calling (888) 698-0000.

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