Single-family home prices rose during the fourth quarter in 88% of US cities despite the slowdown in economic growth.
The low interest rate environment and improvement in the job market along with tight supply are causing prices to rise to a median price of $178,900, the highest since 2005.
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The improvement means prices are on a sustained uptrend. There were 22% fewer homes on the market at the end of December than one year earlier.
Home prices rose 3.6% in the New York, New Jersey, and Long Island metropolitan areas. The Realtor’s Group’s Housing Affordability Index averaged 193.5 in 2012, up from 186.4 in 2011.