With several recent reports showing a sizeable increase in housing prices – anywhere from 5 % to 6% in annual gains – if you are thinking about buying you could be worried that you’ll soon be unable to afford your home.
Buyers Freak out Over Escalating Home Prices
The National Association of REALTORS® recently reported that the median existing-home price nationally in August rose 5.1 percent from the same time a year prior; the Case-Shiller Home Price Index in July showed prices rising 5.1 % spanning a three-month period when compared to a year earlier; plus the Federal Housing Finance Agency’s purchase-only index showed home values rising 5.8%. As if that wasn’t enough to rattle budget-conscious buyers, CoreLogic released a report Tuesday showing annual home-price gains at 6.2%.
“Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” says Anand Nallathambi, president and CEO of CoreLogic. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”
CoreLogic’s report revealed that the states with the biggest price gains were Washington (+10.2%), Oregon (+10.3%), Colorado (+9.1%), and Florida (+7.6%).
However, you need to be assured that these reports don’t give the complete picture and should not be considered evidence of their ability – or lack thereof – to purchase, says realtor.com® Chief Economist Jonathan Smoke. After all, “given the unique nature of homes and how prices are determined through negotiations between buyers and sellers, reports on home prices are, at best, background context,” he notes.
Realtor.com® recently highlighted the differences in just how the indexes compute their findings. This article will assist you to address any concerns on how those numbers were calculated and just what they really mean.
We always conduct a market analysis for our clients prior to them submitting an offer to purchase, so if the seller is not realistic with their list price, we will be able to show them when we present your offer. Remember bad news always gets more attention. So if you need assistance finding your new home here in the Tampa Bay and Surrounding areas. We are here to help. You can always reach us at 813-300-7116 or simply click here and we will get started working for you.