Home Price Increases Continue To Moderate

Washington, DC, Aug. 12, 2014 -- Home-price growth continued to moderate in many metropolitan areas in the second quarter and national year-over-year price appreciation is now at its slowest pace since 2012, according to the latest quarterly report by the National Association of Realtors.

The median existing single-family home price increased in 71% of measured markets, with 122 out of 173 metropolitan statistical areas (MSAs) showing gains based on closings in the second quarter compared with the second quarter of 2013. Forty-seven areas (27%) recorded lower median prices from a year earlier.

There were fewer rising markets in the second quarter compared to the first quarter, when price increases were recorded in 74% of metro areas. Furthermore, 19 areas in the second quarter (11%) had double-digit increases, a sharp decrease from the 37 areas last quarter and the overall average of 43 areas since the second quarter of 2013.

Lawrence Yun, NAR chief economist, says price increases are balancing out to the benefit for both buyers and sellers.

“National median home prices began their most recent rise during the first quarter of 2012 but had climbed to unsustainable levels given the current pace of inflation and wage growth,” he said.

“At this slower but healthier rate, homeowners can continue steadily building equity. Meanwhile, for buyers, increased supply with moderate price gains is giving them better opportunities to choose.”

The national median existing single-family home price in the second quarter was $212,400, up 4.4% from the second quarter of 2013 ($203,400). The median price during the first quarter of 2014 rose 8.3% from a year earlier.

Yun adds that despite the stabilization in price growth, sharp increases still exist in some markets and are impacting sales, notably on the West Coast where inventory shortages are more prevalent. “New construction for ownership housing and rentals is needed to alleviate price and rent pressures and accommodate their growing populations,” he said.



Other Archived Articles

Business Inventories Rise Less Than Expected   Full Article
Washington, DC, Oct. 15, 2014 -- U.S. business inventories rose less than expected in August, according to the Commerce Department.

Producer Prices Decline in September   Full Article
Washington, DC, Oct. 15, 2014 -- Producer prices in the U.S. fell in September for the first time in more than a year, according to the Labor Department.

New York Area Manufacturing Slows in October   Full Article
Washington, DC, Oct. 15, 2014 -- Manufacturing in the New York region expanded at a much slower pace in October, according to the New York Federal Reserve.

Retail Sales Decline in September   Full Article
Washington, DC, Oct. 15, 2014 -- U.S. retail sales fell more than expected in September, following the biggest gain in four months in August, according to the Commerce Department.

Mortgage Applications Up on Lower Rates   Full Article
Washington, DC, Oct. 15, 2014 -- Mortgage application volume rose 5.6% last week from the previous week as interest rates fell, according to the Mortgage Bankers Association.

Florim Opens Showroom in Moscow   Full Article
Moscow, Russia, Oct. 15, 2014 -- Tile company Florim said it has opened a new flagship store in Moscow.

Retirement Fund Files Suit Against Lumber Liquidators   Full Article
Toano, VA, Oct. 14, 2014 -- Lumber Liquidators is facing a class action law suit brought by the City of Hallandale Beach, Florida, Police Officers' and Firefighters' Personal Retirement Trust, according to the Virginia Gazette.

UFloor Systems Signs Western Distributor Big D   Full Article
Aurora, CO, Oct. 14, 2014 -- UFloor Systems has signed Big D Floor Covering Supplies to distribute its Uzin subfloor preparation products.

Mannington Raising VCT Prices in January   Full Article
Salem, NJ, Oct. 14, 2014 — Mannington Mills said it will raise prices by 4% on all of its vinyl composition tile products effective Jan. 5.

Armstrong Issues Third Quarter Warning   Full Article
New York, NY, Oct. 14, 2014 -- Armstrong World Industries became the second public flooring company to issue a third quarter profit warning.

WFCA Names New Leader of Northwest Association   Full Article
Anaheim, CA, Oct. 13, 2014 -- The World Floor Covering Association has named Tish Gasparich leader of the WFCA’s Affiliate Flooring Association Northwest(FAN).

Horizon Forest Products Moves Richmond Offices   Full Article
Richmond, VA, Oct. 13, 2014 -- Horizon Forest Products moved its Richmond offices to 4820 Eubank Road in the Interport Business Center.

Share of Custom Homes on the Decline   Full Article
Washington, DC, Oct. 13, 2014 -- New NAHB research reveals significant regional differences in the share of custom homes started in 2013.

Self's To Distribute Novalis LVT in Midwest   Full Article
Toronto, Canada, Oct. 13, 2014 -- Wichita, Kansas-based Self’s, Inc. will now distribute luxury vinyl flooring made by Novalis Innovative Flooring.

Carpetland To Hold Annual Meeting in Chattanooga   Full Article
Chattanooga, TN, Oct. 13, 2014 -- Carpetland USA ColorTile will hold its 2014 Buying Committee meeting in Chattanooga Nov. 16-18.

Oil Prices Continue Downward Slide   Full Article
New York, NY, Oct. 10, 2014 -- Oil prices extended their free fall Friday.

Economists See Stronger 2015 Economy   Full Article
New York, NY, Oct. 10, 2014 -- Stronger job growth, increasing consumer confidence, and falling oil prices should aid the economic expansion next year, the Wall Street Journal reported.

Tarkett Holding Year-End Sales Promotion   Full Article
Chagrin Falls, OH, Oct. 10, 2014 -- Tarkett said it is holding its biggest sales promotion ever through the end of the year.

Karndean Promotes Hanno to Sales Director   Full Article
Export, PA, Oct. 10, 2014 -- Karndean Designflooring has promoted Tim Hanno to director of retail sales, effective immediately.

Tight Lending Standards Still Hurting Home Builders   Full Article
Washington, DC, Oct. 9, 2014 -- Tight mortgage lending standards continue to affect sales for single-family builders, according to a survey released by the National Association of Home Builders.