There is no questioning the ground that has been made up since the depths of the last recession. The expansion of the economy has simultaneously returned almost all of the jobs that were lost and increased equity across the board. However, few could have predicted the return of higher home values on such a massive scale. According to the National Association of Realtors (NAR), a distinct lack of available inventory has pushed prices higher in nearly every major metro area. Accordingly, 93 percent of the markets involved in a recent NAR survey saw home prices increase by the end of the second quarter of this year. Not surprisingly, San Francisco topped the list.
According to Lawrence Yun, the chief economist at the NAR, the housing market is demonstrating a propensity towards growth. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said. “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”
The following graphic identifies the top 10 markets in which prices increased the most: