Median home prices continue to skyrocket while inventory shortages continue to strangle the necks of homebuyers. The National Association of Realtors (NAR) tells us that the national median price for a single-family house was $263,800 in June 2017. This is a 6.5% year over year all time high.
Lawrence Yun, chief economist at NAR, said, “The demand for buying homes is as strong as it’s been since the Great Recession. Listings in the affordable price range continue to be scooped up rapidly but severe housing shortages (that are) inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”
So what are would-be buyers to do and where, if possible, are they to go?
A new report published by GoBanking Rates studied 100 of the most populace markets using Zillow data from 6/16 to 6/17. The report came up with cities that saw a median home price increase of 14% or more. Researchers then applied the standard measure of housing affordability (30% or less pre-tax income to median price) to those cities.
Soaring home prices and affordability are not mutually exclusive in these 17 “doable” cities. Please note that this information was compiled pre Hurricanes Harvey and Irma. In reverse order…
City % Increase Median Price
17. Garland, TX 14.48% $203,950.
16. Kansas City, MO 14.77% $195,000.
15. Las Vegas, NV 14.90% $269,900.
14. Lexington, KY 15.57% $246.163.
13. Orlando, FL 15.58% $264,900.
12. Omaha, NB 15.90% $226,000.
11. Lincoln, NB 16.35% $219,900.
10. Cleveland, OH 16.69% $ 69,900.
9. North Las Vegas, NV 16.84% $227,845.
8. Indianapolis, IN 16.85% $145.950.
7. Fort Wayne, IN 17.03% $145,000.
6. Minneapolis, MN 17.35% $269,900.
5. Knoxville, TN 19.10% $198,900.
4. Cincinnati, OH 20.60% $180,000.
3. Pensacola, FL 21.01% $188,650.
2. Atlanta, GA 24.54% $335,000.
1. Buffalo, NY 34.76% $ 84,900.
