As the weather heats up the housing market is hitting a boiling point. According to new data from CoreLogic, April saw home prices rise at the highest rate of annual appreciation since February 2006. Home prices grew 13 percent on an annual basis – this is the third consecutive month of double-digit gains. Demand for homes and a limited selection to chose from are driving the record increases.
“Sparse inventory and high demand continues to place upward pressure on home prices,” read the CoreLogic report. “Younger Millennials continue to enter the market in droves while older Millennials look to upgrade and upsize their homes.”
These younger home buyers are challenged by Baby Boomers – who own 54 percent of the nation’s homes – appear to be in no hurry to sell. Seventy-two percent of Baby Boomers listed the desire to relocate as the main reason for wanting to sell their home but cite concerns about not being able to afford a replacement property.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875% percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.