Home prices increased in metro areas in the second quarter, according to the National Association of Realtors, but buyers have had limited options due to shrinking inventory in many real estate markets.
NAR found the median existing single-family home price rose in 110 of 147 metro areas in the second quarter. Prices in three areas remained unchanged, while 34 saw declines. The national median existing single-family home price increased 7.3 percent to $181,500.
"It's most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners," said Lawrence Yun, NAR chief economist. "Inventory has been trending down and home builders are still under-producing in relation to growing demand. Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight."
Celia Chen, housing economist at Moody's Analytics, told Bloomberg that the turnaround in home prices has been broad and there is still risk that they will drop before they begin to grow with any regularity.
