Home prices across much of the U.S. have continued to see a sharp increase as mortage rates remain low and buyers compete for the limited selection of homes for sale. The demand for housing continues to defy historic norms as Americans continue to be impacted by high unemployment and a global pandemic.
The National Association of Realtors reports that home prices increased in all 181 metropolitan areas it tracks and in two-thirds of those markets, prices climbed by double-digits. On average, the national increase in home prices was 12 percent year-over-year, as of October.
A significant housing shortage is hindering buyers’ ability to make a purchase. There were just 1.47 million homes for sale in Q3 2020 – down 19.2 percent from last year.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 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.