According to the latest quarterly report by the National Association of Realtors (NAR), the median existing single-family home price rose in 133 out of 150 metropolitan statistical areas in the first quarter. In addition, the national median home price was up 11.3 percent from the first quarter of 2012. This is the strongest year-over-year price increase since the fourth quarter of 2005, when the median price jumped 13.6 percent.
“The supply/demand balance is clearly tilted toward sellers in a good portion of the country,” said Lawrence Yun, NAR chief economist. “Inventory conditions are expected to remain fairly constrained this year, so overall price increases should be well above the historic gain of one-to-two percentage points above the rate of inflation.”
A separate breakout of qualifying incomes to purchase a median-priced existing single-family home on a metropolitan area basis demonstrates ample buying power in the current market. Specifically, it showed that the typical buyer earns roughly double the income needed to buy a home in his or her area.
