The National Association of Realtors releases their latest Quarterly Metro Home Price Report last week. The report revealed that severely lacking inventory across the country drained sales growth and kept home prices rising at a steady clip in nearly
all metro areas. Home prices rose 5.3% over the last quarter across all metros.
"Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year,
steadfast price growth and weakening affordability conditions."
WHAT THIS MEANS TO SELLERS
Rising prices are a homeowner's best friend. The Washington Post's recently had a article stating "The rise in median sales prices has made current homeowners much more willing to sell their home, and that willingness is one of the main drivers behind
the inventory that does make it on the market. While it hasn't been enough to meet demand, it has made the situation much better, compared with even three or four years ago."
WHAT THIS MEANS TO BUYERS
In a market where prices are rising, buyers should take into account the cost of waiting. Obviously, they will pay more for the same house later the year or next year. However, the cash needed to purchase that home will also increase.
If you're thinking of selling and moving down, waiting might make sense. If you are a first time buyer or a seller thinking of moving up, waiting probably doesn't make sense.