Price is one of the major things that people consider when looking for a house to buy aside from its location. However, recent reports indicate that homebuyers may be wary of buying new houses in certain cities in the U.S., as prices of homes continue to rise.
According to a recently released data from the S&P/Case-Shiller Home Price Indices, prices of houses in certain cities in the United States are going up, Realtor.com reported. There was an overall increase of 5.4 percent in the prices of homes when compared to data gathered in 2014.
"Prices are going up, and it's being aided by low mortgage rates, tighter supplies [of properties on the market] and lower unemployment," said senior index analyst at S&P Dow Jones Indices, Chris Bennett.
The said rise in the housing prices was notably seen in cities such as Portland, OR, San Francisco and Denver. Prices in Portland saw a significant rise of 11.4 percent from December 2014 to December 2015.
In San Francisco, homebuyers saw an increase of 10.3 percent during the same period while prices in Denver rose by 10.2 percent.
The increase in the housing prices in Portland was attributed to the fact that more and more people saw the similarities between Portland and San Francisco Bay area. However, as the demand for houses in Portland increased, so did the prices of houses in the city.
The publication noted that it was also surprising to see a rise in the prices of homes in Detroit, as the city previously suffered high unemployment in the past few decades. However, new businesses are opening in the city, which led to a rise of 7.1 percent in housing prices.
As previously reported in Realty Today, more and more Americans are no longer interested in purchasing their own homes because of the price of houses in the U.S. and stagnant wages of employees. This has led to more homebuyers opting to rent instead of buying.
