Home prices are continuing to grow, albeit at a slower pace in the third quarter according to a recent report from the National Association of REALTORS®. Based on the association’s studies, price gains were noted in most metropolitan areas throughout the country, however gains are much slower than last year, which is a relief after seeing markets growing at astronomical, and unhealthy rates.
NAR reports there were home price gains in 73 percent of measured markets, and in 125 out of 175 measured metropolitan areas. The majority of the country is seeing growth in home prices, which is beneficial for the market overall as homes aren’t losing value, even after such drastic appreciation rates noted earlier in the year.
All four major regions of the country showed increases that were at or below 5 percent from a year ago. The national median existing single-family home price was marked at $217,300. This value was up just a modest 4.9 percent from the third quarter of 2013 which saw a median value of $207,100.
“Home-price gains returned to more normalized levels of low- to mid-single digit rate of appreciation in many metro markets as inventory levels steadily increased,” said Lawrence Yun, chief economist for NAR. “Moreover, there are a good number of local markets that are still remarkably affordable with median prices at or under $200,000.”
Slower home price gains have been a remarkable force in driving home sales. With buyers finding more affordable home prices the total existing-home sales jumped in the third quarter by 5.2 percent to a seasonally adjusted annual rate of 5.12 million. This year has proven to be a little bit slower in sales, in the third quarter of 2013 there were 5.32 million units sold, however the regulation in home price gains is helping the market shape up to be swinging big in 2015.
Coronado Luxury Home Market Sees Positive Gains
In luxury markets such as Coronado, home prices have been gaining as well. According to Altos Research, a California-based real estate analytics company, the median single-family home price has been on the rise since September, as has demand for homes in the community. These calculations come as somewhat of a surprise as this time of year typically sees markets slow down a bit.
Altos reports the median single-family home value in Coronado is $2,589,731 as of November 7. The median home value had remained pretty steady throughout the last 12 months, however in September it began a steep climb and has not let off even well into November.
This sudden uptick could be due to a climbing demand for homes in Coronado. Altos measures supply and demand levels through a unique value known as the Market Action Index, which uses 30 as a neutral point. With a current MAI of 34.68, Coronado is above neutral and into seller-favored territory indicating that there are more buyers than homes available on the market. This demand is giving sellers more leverage in asking more for their Coronado luxury homes.
If you are interested in learning more about real estate in Coronado, please contact our team of property experts today.