The latest report from the National Association of Realtors (NAR) revealed that home prices rose in the second quarter of 2020. Median single-family home prices were higher year-over-year in 96% of measured markets, with 174 of 181 metropolitan areas seeing growth.
“Home prices have held up well, largely due to the combination of very strong demand for housing and a limited supply of homes for sale,” said Lawrence Yun, NAR chief economist. “Historically-low inventory continues to reinforce and even increase prices in some areas.”
According to NAR’s findings, 15 metro areas saw price spikes in the double digits including Huntsville, Ala. (13.5%) and Memphis, Tenn. (13.4%) leading the way. Yun also noted that the low mortgage rates will continue to keep the buying market active. However, supply is limited.
“Unless an increasing number of new homes are constructed, some buyers could miss out on the opportunity to purchase a home or have the opportunity delayed,” Yun said. “In the meantime, prices show no sign of decreasing.”
The report also showed that the most active areas were those that are less occupied, which suggests the trend of hipsturbia. This could be due to the coronavirus pandemic pushing homebuyers to be able to practice social distancing much easier.