How to buy and sell property in the US
Property prices in the United States rose in April to the highest level in five years, despite the government’s recent easing of mortgage restrictions.
Prices rose 5.6% from a year earlier, according to data from CoreLogic Inc., the data firm.
The median price of a home rose 3.7% to $328,000 in the New York metro area, according in a statement released Thursday.
The average price of an apartment rose 6.7%, to $2.2 million, while the average price for a single-family home rose 8.4% to more than $250,000.
The biggest price gainers were in the Northeast, where the median price rose 9.2%, while the price of single-home homes rose only 3.4%.
In New York, prices for single- and multi-family homes rose the most, at 2.9% and 1.5%, respectively.
The metro area had the highest median price in the nation, rising 5.9%.
“The nation is still facing a housing crisis, but the median home price in Manhattan is still above the national average,” said Andrew Weiler, chief economist at CoreLogics.
“While the mortgage rate was historically low, many buyers are now taking out a loan to pay for their home.
As prices continue to rise, the Federal Reserve has been signaling the end of its quantitative easing programs and tightening of mortgage lending standards.
The market has reacted in a way that has caused the Fed to tighten its lending standards even further, which has pushed prices higher.”
The housing market has been on a tear since the recession ended in mid-2009, but prices have been rising as homebuilders have cut back on construction.
The number of new homes completed fell 6.2% in April, the most since March 2013.
Homebuilding has been hit hard by the downturn in the economy, and the Fed has signaled it is planning to start winding down its stimulus programs at the end the year.
The Fed has said that if the economy stays on a path of growth and employment gains, it will be willing to consider relaxing its quantitative-easing program in the spring.
But economists have warned that if growth is weaker than expected and unemployment continues to rise even higher, the Fed may not be willing or able to lift rates.
The Federal Reserve cut its policy rate to a record low of 0.25%, the lowest since February 2008, on Feb. 23.
It is the first time since the financial crisis that the Fed hasn’t raised rates, which have been at 0.5% since late 2008.
In its statement, CoreLogica said that in the first quarter, home prices rose at a 4.5-year-old pace, the fastest pace since the third quarter of 2012.
The growth in home prices, Corelogica said, came as “homebuyers continue to be encouraged by record numbers of foreclosures and continued weakness in mortgage lending rates.”
The CoreLogicas median price index, a measure of home prices and rents, rose 7.3% to a seasonally adjusted $330,000, the strongest increase since January 2011.
Home values are up 10.5%.
Homebuilder prices rose the fastest since July 2016, according a report from Zillow Inc. Zillows median home value rose 5% in the fourth quarter to $1.4 million.
The index of multifamily homes rose 6%, but home prices still lag behind the market.
Homebuilders are reporting that sales of single family homes have slowed, but they have been adding to existing buildings.
In the past year, builders have added more than 100,000 new single-story houses.
The housing recovery has slowed in recent months, with home prices rising more slowly than the broader economy, which is the primary driver of economic growth.