Home prices are still robust in their upward trajectory, according to the latest update from the National Association of Realtors. So much so that San Jose, California has become the first U.S. metro area with a median single-family home price above $1 million.
The median, existing single-family home price in the second quarter of 2016 was $240,700 across the nation, up 4.9 percent from the second quarter of 2015 ($229,400), which was previously the peak quarterly median sales price.
The median single-family home price increased in 83 percent of measured markets, with 148 out of 178 metro areas showing gains based on closed sales in the second quarter, compared with the second quarter of 2015.
Total sales of existing homes, including single family and condos, rose 3.8 percent to a seasonally adjusted annual rate of 5.50 million in the second quarter, from 5.30 million in the first quarter of this year, Realtors said. That’s 4.2 percent higher than the 5.28 million pace during the second quarter of 2015.
“Steadily improving local job markets and mortgage rates teetering close to all-time lows brought buyers out in force in many large and middle-tier cities,” said Lawrence Yun, NAR chief economist. “However, with homebuilding activity still failing to keep up with demand and not enough current homeowners putting their home up for sale, prices continued their strong ascent – and in many markets at a rate well above income growth.”
Yun said that without enough new construction, existing inventory failed to keep up with the growing demand for buying. As a result, homes typically stayed on the market for about a month throughout the second quarter.
The five most expensive housing markets in the second quarter were the San Jose, California, metro area, where the median existing single-family price was $1,085,000; San Francisco, $885,600; Anaheim-Santa Ana, California, $742,200; urban Honolulu, $725,200; and San Diego, $589,900.