Dive Brief:
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So few homes have been for sale this year that prices on available inventory "accelerated" in the first quarter, especially in metropolitan areas, the National Association of Realtors reported on Monday.
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Coupled with strong demand, the weak inventory spurred an increase in the median-family home price in 85% of the cities the association monitors. In 25 areas, prices dropped compared with the final quarter of 2014.
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In 51 metros, home prices rose by double digits—a sharp increase from the 24 cities with that level of increase during the last quarter, the report noted.
Dive Insight:
Despite higher prices, sales are booming compared with the first quarter of 2014, according to NAR Chief Economist Lawrence Yun. He attributed much of the activity to a healthy job market and low interest rates, which encouraged more first-time buyers to enter the market.
Still, Yun cautioned: "Sales could soften slightly in some of these markets seeing sharp price appreciation unless housing supply markedly improves and tempers its unhealthy level of growth."
