Although the global economy is not in a great place, US home values and rents have been steadily rising.
The Standard & Poor’s/Case-Shiller 20-city home price index climbed 5.1 percent in the 12 months that ended in August. Many economists agree that this rate is more sustainable than the huge double-digit gains we saw in the beginning of 2014.
Home value and rent prices are rising due to an increased demand that developed from an improving economy. With more jobs have come more people in the real estate market. Such a sharp increase in demand has decreased supply of homes, and prices rise. Construction has increased as well in order to catch up to demand.
Median rents also rose nationwide in September, to a seasonally adjusted rate that was 3.7 higher than a year ago.
“Prices are rising the fastest in markets where job growth and net migration are the strongest and inventories are the tightest,” said Mark Vitner, an economist at Wells Fargo Securities.
Sales of existing homes jumped 4.7 percent in September to a seasonally adjusted annual rate of 5.55 million, the National Association of Realtors said last week.
So far this year, pace of construction rose 12%. Most of the construction has been in condominiums and apartments. Single-family construction was flat in September.
According to the Associated Press, “home values are rising largely because few properties are being listed for sale. The number of existing homes for sale has fallen 3.1 percent in the past 12 months. In September, the number of available homes was equal to just 4.8 months’ of sales, below the six months’ supply that is typical of a balanced market.”
Low mortgage rates are also encouraging people to buy real estate right now.
Clearly, now is a secure and beneficial time to enter the real estate market. Despite a shaky global economy, the real estate market is doing well nationwide, with US home values steadily rising.
Take advantage of this- contact RE/MAX Paradise today for your dream home!