According to Realtor.com’s May 2019 monthly housing trend report, the national median listing price for a home sets a new record at $315,000. Despite the continued rise in home prices, rising wages, more inventory, and declining mortgage rates, have made 74 of 100 metro areas more affordable to buyers in their market.
“…the boost in affordability has yet to translate into more home sales perhaps because. while the shift in trend is welcome, the current monthly savings are small and some buyers are waiting for markets to tip further in their favor.”Danielle Hale, chief economist at realtor.com
The top ten cities showing the biggest improvements in availability of affordable homes also added decreasing listing price. The ten include:
Charlotte, North Carolina, median home price $329,450
Dallas-Fort Worth, Texas, median home price $350,000
Austin, Texas, median home price $369,995
Cape Coral-Fort Meyers, Florida, median home price $299,900
Portland, Oregon, median home price $474,975
Atlanta, Georgia, median home price $335,00
Lakeland-Winter Haven, Florida, median home price $231,500
San Francisco-Oakland, California, median home price $954,500
Des Moines, California, median home price $288,000
San Jose-Sunnyvale, California, median home price $1,167,444 000.
This data is not telling us that that there are more homes in the lower prices for first-time home buyers. According to the realtor.com report, the number of houses below $200,000 decreased 8% year-over-year, and the number of houses priced above $750,000 increased 11%.
The data is telling us that the price of homes in a specific metro area market, when compared to the price in the same market, became more affordable over the past year to the residents in that market. The market itself may still be a very pricey market, but the buyers in the market with increased income and lower interest rates are more able to afford the median home.
San Antonio-New Braunfels, Texas was also one of the 74 metro areas that became more affordable over the last year with a median home price of $295,000. Houston-The Woodlands et al, Texas metro area registered no change year-over-year with a median home price of $324,945.
So affordable homes in the lower prices are still needed to round out the market and where there is a demand, investment will follow.
REI Capital Resources is a direct lender as well as a broker of funding solutions. We offer short and long-term financing options and are eager to support your project with funding.
Please give me a call when you find that perfect real estate investment and know how much money you need. We are “focused on funding your success.”