The price of a home in the U.S. is still rising, although none could be more expensive than California, with the median price of a house now at $980,000.
The metro area of San Jose, California topped the list of the most expensive housing markets in the second quarter of 2015. This is based on the latest report released by the National Association of Realtors on Metropolitan Median Area Prices and Affordability, reports CNN. Three other cities in California made it to the top five list namely San Francisco, Anaheim-Santa Ana and San Diego. The median home price in these metro areas are at $841,600, $685,700 and $547,800, respectively. The other non-California city listed at the top five is Honolulu with a median home price of $698,600.
In the report, CNN also mentioned the factors which affected the home price surge in the country, such as rising rents and other economic factors. Although the biggest accelerator is the lack of housing inventory. Danielle Hale, director of housing statistics at the National Association of Realtors (NAR), mentioned that if the supply issue was addressed, home prices would not be rising as quickly. Hale added, "The supply is really the clinching factor. New construction is needed, particularly at the low and middle end."
Meanwhile, Lawrence Yun, NAR chief economist stated that overall the U.S. housing market has shifted positively in the recent months, reports Realtor. Yun cited the slow rise in mortgage rates and stronger local job markets as some of the factors which fueled the high demand in the housing market this past spring. The NAR economist also agreed with Hale that low supply pushed home prices up in some areas. Yun said, "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."
Overall, the NAR's report posted the median price of homes nationwide at $229,400, up 8.2 percent from previous year.
