Home Prices, Transaction Activity Unscathed in June by Mortgage Rate Spike
“ZipRealty’s latest report provides our first real glimpse into the health of real estate market since mortgage interest rates began to rise in mid-June,” says CEO and President Lanny Baker. “During the third week of June, mortgage rates posted their largest one-week increase in more than a quarter-century and rates are now 1% higher than they were a month earlier. However, that hasn’t mattered much in terms of home sales prices and transaction activity,” he says.
“The median home sales price in the 24 markets we analyzed was over $280,000, up $10,000 from May 2013 and 16% higher than May 2012. Sales prices in June hovered above 99% of list prices on average, just as we’ve seen in prior months. Median days on market for homes sold in June decreased by another two days compared to May 2013 − and at 27 days stands nearly two weeks shorter than last June. These indicators point to a market that appears to be relatively undisturbed by the recent rise in interest rates − as of yet,” he shares.
Other interesting highlights from the report include:
- Sacramento has shot ahead of the SF Bay Area in percentage home price increases, jumping 42% on a year-over-year basis as of June 30, while Bay Area prices increased 38%.
- The West Coast continues to dominate in terms of home price growth: The Bay Area, Las Vegas, Los Angeles and San Diego followed Sacramento in percentage growth.
- The number of new home listings in Denver, Seattle and Portland increased substantially, presenting more opportunities to buy for interested home buyers. Denver listings increased 23% year-over-year as of June 20, while Seattle and Portland both saw 20% increases in new listings.
Download a copy of the latest Housing Trends Report now.