Short List

High-Rising

Home prices increased in 85 percent of the U.S. markets tracked by the National Association of REALTORS^® in the first quarter of 2015, and the metro areas that experienced double-digit appreciation doubled compared to the prior quarter.

The median existing single-family home price rose year-over-year in 148 out of 174 metropolitan areas tracked, while 25 areas (14 percent) recorded lower median prices from a year earlier. NAR attributes the price gains to stronger demand amidst lagging inventory levels.

The national median existing single-family home price in the first quarter was $205,200, up 7.4 percent from the first quarter of 2014 ($191,100). This is an ongoing trend: the median price during the fourth quarter of 2014 had increased 6.0 percent from a year earlier.

Still, total existing-home sales declined 1.8 percent in the first quarter to a seasonally adjusted annual rate of 4.97 million from 5.06 million in the fourth quarter of 2014. But the sales rate was 6.2 percent higher than in the first quarter of 2014.

NAR chief economist Lawrence Yun says, “Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market. However, stronger demand without an increased supply led to faster price growth in many markets.