Steady Increase in Home Prices Nationwide
The economy's last quarter has shown GDP growth at 1.4% for the end of 2015 (according to The Bureau of Economic Analysis, National Income and Product Accounts, March 25, 2016) signaling that we are steadily on the rise of real nationwide growth. Because of this growth many markets have seen boosts to their sales and prices including real estate and home prices.
Looking at the S&P/Chase-Shiller Home Price Indices, we see the numbers are telling us that home prices are continuing to rise nationwide. The cost of homes have been raising slowly but steadily, encouraging people to buy while prices are within their comfortable range. It has been shown that when the market is growing and prices raise a few percent points for an area, people become more eager to buy because of the reassurance of the great market.
All of this growth is in part due to an increase in wages and salaries. The Bureau of Economic Analysis also put this increase at 4.5% from January of 2015 to January of 2016. This keeps house affordability in line with people's budgets and acceptable range of cost. Adding another busy spring market and we can be sure that housing will be very competitive in big metro areas.