Soaring US house prices gather momentum as rally intensifies
Home prices in the United States are rising at an accelerating rate, new data shows, as the strongest real estate boom in more than a decade increases home values from large metropolises to small towns and vacation spots .
The median selling price of existing homes in each of the more than 180 metropolitan areas tracked by the National Association of Realtors rose in the fourth quarter from a year earlier, the association said Thursday. This is the second consecutive quarter that each metropolitan area tracked by NAR has posted an annual price increase, marking the first time this milestone has been reached in consecutive quarters.
The latest data highlights how the rise in home prices, which has unfolded over the years in separate pockets such as Idaho or parts of the Sun Belt, has become much more prevalent and continues to gain momentum. ‘magnitude. In the fourth quarter, 161 metropolitan areas posted double-digit price increases, compared with 115 metropolitan areas posting double-digit gains in the third quarter.
Demand for housing has increased over the past year as buyers have taken advantage of record interest rates and the pandemic has prompted many households to seek larger homes that could accommodate remote working better. Home sales in 2020 rose 5.6% to the highest pace since 2006, NAR said.
“People are willing to move further because they only have to come to the office once or twice a week or a month,” said Richard Whiteley, co-president and chief operating officer at IHP Capital Partners, which invests in the construction of new homes. and land use planning. “There is a space race.