WASHINGTON – Oct. 9, 2015 – Realtors® in the U.S. expect home prices to rise 3.5 percent over the next 12 months, according to the August 2015 Realtors® Confidence Index Survey, which is based on the responses of a monthly survey to more than 50,000 real estate professionals.
However, Florida’s Realtors are more optimistic about price gains than Realtors in other states, predicting a median home price growth of 5 percent to 6 percent over the next 12 months.
Only four other states came close – Washington, Oregon, Colorado and Georgia – where real estate professionals expect median price growth to be 4 to 5 percent.
Realtors surveyed say that sharp price increases in recent months have made homes unaffordable for many potential homebuyers, and that they expect prices to moderate in the coming weeks. The median price of all existing homes sold in the U.S. as of July was $234,000, a 6 percent increase on an annual basis. Home prices have risen at a faster pace than annual growth in median household income of 2 percent since 2010, according to NAR.
“Strong demand amid tight supply has pushed up prices,” according to the report. “While rising prices are lifting homeowners out of negative equity, the strong price recovery amid the modest growth in incomes is also making homes less affordable and dampening demand.”
Source: “REALTORS® Expect Price Growth Moderate in Next 12 Months,” National Association of REALTORS® Economists’ Outlook blog (Oct. 5, 2015)
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