The National Association of Realtors (NAR) released their 2012 fourth quarter metro area home price report this past Monday showing that the “median existing single-family home price rose in 133 out of 152 metropolitan statistical areas (MSAs) based on closings in the fourth quarter compared with the same quarter in 2011.” The national median existing single-family home price reached $178,900 in the fourth quarter 2012 which was a 10% increase over the fourth quarter of 2011. The NAR states that the increase was the strongest it has been since the fourth quarter of 2005 and attributes the significant jump in median home prices to pent up demand, low interest rates and low inventory levels. What is more, home affordability reached a record high in 2012 based on the NAR’s Home Affordability Index.
All regions of the nation analyzed by the NAR showed increases in existing-home sales. The West region’s existing-home sales were 5.9% greater in the fourth quarter than the third quarter and 5% greater than a year ago. To see the NAR’s interactive Metropolitan Median Area Prices and Affordability Map, and additional fourth quarter reports, go to http://bit.ly/VSQWOy.