Driven by tight inventory and high demand, home prices soared to new highs in 44 percent of US housing markets, according to a market report recently released by the National Association of Realtors (NAR).
Using new data from the country’s largest property database ATTOM Data Solutions, NAR studied 201 metro areas in the US that have populations of at least 200,000. Home prices soared to new highs in 89 of the 201 studied metros.
The Dallas-Fort Worth, TX metro was singled out as the hottest market in 2016. This comes as little to no surprise as this metro is usually listed on most “hottest market” lists compiled by real estate experts.
The growth recorded in the Dallas-Fort Worth metro is a reflection of the housing growth occurring throughout the state. Houston, TX was named the second hottest metro in 2016 for home price growth by NAR.
Rounding out the top three hottest metros was Atlanta, GA, one of the country’s top markets where homebuyers will recuperate their financial investment the fastest.
The ever-hot markets of Boston, MA and San Francisco, CA were also singled out by NAR for in the top five markets that hit new price highs.
Meanwhile, there were several Ohio markets that recorded new home price highs in 2016 — Dayton, Columbus and Cincinnati.
The data from ATTOM also points out that 95 of the 201 metro areas studied are still below their pre-recession (2009 or earlier) peaks in median home prices. The New York-New Jersey metro area is still 14.3 percent below its peak, while Washington, DC remains 3.2 percent below its peak. Meantime, the sizzling Los Angeles, CA metro is only 1.8 percent below its pre-recession peak.
“Much of this is due to a growing economy and the shift from a manufacturing economy to a service-based economy,” said Matthew Watercutter, senior regional vice president and broker of record for HER REALTORS.
Watercutter cited lack of inventory as well as high demand for the prices in his Ohio market hitting new highs in 2016.
“Buyers are moving and relocating, causing a great deal of competition for quality inventory, and causing homes to sell quickly, and at a higher price than in recent years,” Watercutter added.
Click here to read the entire report.