TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1433132
M R EP O RT | 11 MDWELL Where Are Home Prices Rising the Fastest? Rank Metropolitan Statistical Area Quarter/Quarter Year/Year Distressed Saturation 1 Phoenix, AZ – Mesa, AZ – Scottsdale, AZ 10.6% 56.8%* 2.7% 2 Tampa, FL – St. Petersburg, FL – Clearwater, FL 10.0% 31.1% 2.8% 3 Las Vegas, NV – Henderson, NV – Paradise, NV 8.9% 25.5% 4.0% 4 Raleigh, NC 8.6% 25.4% 2.0% 5 Portland, OR – Vancouver, WA – Hillsboro, OR 8.5% 25.1% 2.9% 6 Tucson, AZ 8.5% 21.2% 0.9% 7 Orlando, FL – Kissimmee, FL – Sanford, FL 7.6% 20.9% 1.8% 8 Jacksonville, FL 7.1% 22.9% 2.0% 9 Rochester, NY 7.1% 25.7% 2.5% 10 Atlanta, GA – Sandy Springs, GA – Rosewell, GA 7.0% 20.1% 0.8% T he October 2021 Home Data Index Market Report (HDI) from Clear Capital shows that the average American home increased in value by 5.3% over last quarter. According to the report, home prices are now up 19.5% year over year on average. The largest growth was seen in the South, where prices are up 6% on average this quarter. Also this quarter, properties in the West appreci- ated by 5.8%, the Midwest appreciated by 4.8%, and the Northeast grew by 3.9% While the residential real estate market has been experiencing torrid growth, the economy seems to be slowing down," said Brent Nyitray, CFO, Ark Mortgage. "The advance estimate for third-quarter GDP came in at a disappointing 2% and the Chicago Fed National Activity Index turned negative in September, indicating the econ- omy is growing below trend. The conventional wisdom was that the economy would accelerate into the end of the year; instead, the economy seems to be decelerating." "The pandemic certainly explains part of what is going on. However, the ubiquitous shortages are having an effect as well," Nyitray continued. "Shortages of lumber, construction materials, and skilled labor are keeping housing starts at 1959 levels. This is pushing up house prices as demand is insatiable." Pandemic-related supply and labor shortages, as well as a bottleneck in the nation's supply chain, have contributed to an uptick in housing prices nationwide. 1 6 3 4 5 8 9 10 7 2