According to the latest quarterly report by the National Association of Realtors® (NAR), almost all of the nation’s metro areas experienced price growth and had minimal inventory increases in the first quarter of 2020. Lawrence Yun, NAR’s chief economist, said regarding the report that, “The first quarter price jumps mostly reflect conditions before the coronavirus outbreak and show the strength of the housing demand before the pandemic. Even now, due to very limited listings, home prices are showing no signs of buckling.” Yun went onto say that in March, the median sales price of existing homes rose 8% on a year-over-year basis. The strong desire for housing, paired with the dire inventory totals contributed to higher home prices. “The fast-rising home prices are not healthy, so more home building needs to take place as the economy begins to reopen,” Yun said. “Mortgage rates are at historic lows and those with secure employment will be attracted to the market.”
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Home prices rise in 96% of metro areas in first quarter of 2020