Median Home Prices Rise in the U.S.

According to current news outlets like the Washington Post, U.S. home prices are rising steadily, with double digit jumps evident in cities like Denver and San Francisco. This comes according to various home price indices like the Standard & Poor’s/Case Shiller 20 city home price index and their Dow Jones index. The median amount of the rise in price is 4.9%.

David Berson, chief economist at Nationwide Insurance said that the gains are probably sustainable, suggesting that there is little fear of the rise being so rapid that it makes home prices unaffordable. Home values have been boosted by strong job growth and low mortgage rates, which yield greater demand for housing.

Other sources report that home prices are rising 13 times as fast as wages are growing in America, which is bad news for renters who wish to own their own place. Daren Blomquist of Reality Trac seems to counter some of Berson’s optimism by saying that “Homeownership is getting further out of reach for the average wage earner in America.  His firm reported that worker’s earning crept up just 0/3%, while home prices shot up 17% during the same period from 2013 to 2014.  

The New York Times claims in a recent headline that home prices have returned to sanity after an era of ups and downs. The chief executive of the Greater Tampa Association of Realtors said, “We’re having the kind of growth that is going to be sustainable, and any time you have steady growth it’s much better than having bubble growth.”[1]

 

 


[1] http://www.nytimes.com/2015/06/18/upshot/after-an-era-of-ups-and-downs-home-prices-return-to-sanity.html?_r=0&abt=0002&abg=1

 

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