If you are waiting for home values to hit bottom before buying a home, you may have waited too long. However, this depends on where you live.
In some parts of the country, home prices have struggled to find their footing. In contrast, others have surged. Overall, single-family home prices increased in 110 of the 147 large cities during the second quarter, the National Association of Realtors reports.
“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 NAR chief economist Lawrence Yun. “Inventory has been trending down and home builders are still under-producing in relation to growing demand.”
The median home price was $181,500. This was a 7.3 percent jump from a year earlier. In addition, this was also the strongest annual gain since the beginning of 2006.
Local markets paint different picture
Although national trends showed promising gains, some local markets struggled. Factors such as foreclosures and high unemployment continue to add pressure to property values. The following are the cities that saw the biggest home price drops during the second quarter:
1. Bridgeport-Stamford-Norwalk, Connecticut – 12.9 percent
2. Edison, New Jersey – 9.5 percent
3. Gulfport-Biloxi, Mississippi – 9.4 percent
4. Elmira, New York – 8.2 percent
5. Atlantic City, New Jersey – 7.7 percent
6. Pittsfield, Massachusetts – 7.6 percent
7. Charleston, West Virginia – 5.9 percent
8. Green Bay, Wisconsin – 5.8 percent
9. Manchester-Nashua, New Hampshire – 5.8 percent
10. Hartford-West Hartford-East Hartford, Connecticut – 4.4 percent
These were negative changes for current homeowners in these cities. However, this could make affordable options for first-time homebuyers.
Some local markets reported large increases during the quarter. Many of the following areas saw prices plummet following the real estate bubble burst. However, they are starting to bounce back.
1. Detroit-Warren-Livonia, Michigan – 29.2 percent
2. Phoenix-Mesa-Scottsdale, Arizona – 29 percent
3. Boise City-Nampa, Idaho – 21.7 percent
4. Florence, South Carolina – 20.5 percent
5. Akron, Ohio – 16.5 percent
6. Buffalo-Niagara Falls, New York – 16.5 percent
7. Bismarck, North Dakota – 14.8 percent
8. Cumberland, Maryland/West Virginia – 14.7 percent
9. Cape Coral-Fort Myers, Florida – 14.4 percent
10. Peoria, Illinois – 12.3 percent
When making a mortgage rate comparison, it is important to have the latest information. Freedom Mortgage updates its mortgage loan rates daily to make sure you find the best mortgage, whether you are looking to buy a home or just refinance an existing loan.
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