The metro areas all throughout the U.S are experiencing a boom in home sales. A promising climb in home sales throughout the country amidst insufficient supply caused home prices to steadily rise in most metro areas during the second quarter, as stated in a report by prnewswire.com. The recent report by propertywire.com, shows that, "The median existing single family home price increased in 93 percent of measured markets, with 163 out of 176 metropolitan statistical areas showing gains."
Factors that led to the shifting in the real estate industry in the metropolitan areas are the steady rent growths, the slow increase in mortgage charges and the availability of local job markets. However, it is not an assurance that the numbers will remain the same. There is still the challenge on the horizon. According to a previous report by prnewswire.com, "With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership especially in higher-priced markets." By the end of the second quarter, an approximate value of 2.3 million existing homes have been available for sale.
In addition propertywire.com said, "An average supply during the second quarter was 5.1 months, down from 5.5 months a year ago." The figures also show that total existing home sales in the Northeast increased 10.3 percent in the second quarter and are 8.6 percent above the second quarter of 2014."
Despite the growth in home sales, it is not assurance that everyone can purchase their own home. According to a previous report by prnewswire.com, ""The inequality is growing in America because the downward trend in the homeownership rate means these equity gains are going to fewer households as well." For instance, the rising of home prices is connected to affordability as well as the income of the purchaser. According to a previous report by propertywire.com , "To purchase a single family home at the national median price, a buyer making a 5% down payment, would need an income of $49,195."
