Stronger demand has caused home prices to rise in most metro areas during the first quarter of 2015.
The median existing single-family home price increased in 85 percent of measured markets. One hundred forty eight metropolitan statistical areas (MSAs) out of 174 nationally showed gains in prices based on first quarter closing compared with a year earlier.
Lawrence Yun, NAR chief economist, says after moderating to healthier levels of growth at the end of 2014, prices picked up in several metro areas during the first quarter. “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 increasing supply led to faster price growth in many markets.”
The national median existing single-family home price during the first quarter was $205,200, up 7.4 percent from the same period last year. The most expensive housing market in the United States in the first quarter was San Jose California where the median existing single-family price was $900,000, followed by San Francisco at $748,300. The least expensive metro market was Youngstown Ohio where the median single-family home price was $64,300.
According to Freddie Mac the interest rate on a 30 year mortgage remained below 4% at an average of 3.72% down from 3.97 percent during the fourth quarter of 2014.