New home under construction in Naples, Florida by Nova Homes of South Florida
Real estate prices posted an annual gain of 6.3% in February, according to the latest S&P CoreLogic Case-Shiller Indices.
"It's getting increasingly difficult to be a buyer," said Keith Gumbinger, vice president of HSH.com.
Home buyers in Seattle, Las Vegas and San Francisco are facing the biggest gains. Seattle prices rose the most with a 12.7% year-over-year price increase, while Las Vegas prices jumped 11.6%.
But so far exploding price increases haven't stopped home buyers. Homes are still flying off the shelves.
For instance, the typical property in Seattle spent 29 days on the market in February, according to Realtor.com. In Vegas, time spent on the market was 42 days, and homes in San Francisco sell in just 21 days.
With a flourishing labor market, steady economic growth and wages finally starting to rise, home prices aren't expected to slow down anytime soon.
Low housing supply has been pushing up prices as demand surges. Competition is stiff, with above-asking price offers and bidding wars being common occurrences in the country's hottest markets.
Mortgage rates have also started to creep up, which adds even more pressure to the affordability problem that many homeowners face.
"There is no let-up to rising home prices," said Lawrence Yun, chief economist at the National Associate of Realtors, in a statement Tuesday morning. "Even as the tightening job market is starting to boost incomes, those looking to buy are facing a double whammy of fast rising home prices and higher mortgage rates."
With low inventories, Nova Homes of South Florida thinks this is a great time to build new, and get exactly what you want. Homes are priced from the $200s to $2 million. For more information, contact Nick at 239.776.5076 or visit www.novahomesbuilder.com
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