The latest figures released by the National Association of Realtors show that the property market across America continues its revival as prices continue to rise.
Moe Veissi, National Association of Realtors' president, said: "Home buyers today can stay well within their means. Record low mortgage interest rates and an over correction in home prices have opened the door to many potential buyers. What we need now is additional inventory in the lower price ranges, so we hope banks will be releasing more foreclosure inventory into the market. With gains apparent in all of the price measures, banks also should have more confidence in expanding mortgage credit to home buyers using safe but sensible standards."
The second quarter of 2012 saw the largest year-on-year leap in house prices since 2006, with the price of a single family home in 110 of the 147 metropolitan areas showing an increase. The National Association of Realtors expects house prices to keep rising as the market continues its recovery.
A 7.3% rise in the median value of existing single-family homes was experienced, rising to $181,500 from $169,100 when compared to the second quarter of 2011. The gain that was witnessed in 2006 was 9.4%, and prices still remain over 20% lower than they were in 2006 due to the severity of the property market crash.
Buyers now believe that they are in a position once again to start meeting mortgage conditions, and with mortgage rates still at an all time low they are more affordable than ever. As more buyers enter the market again, inventory is struggling to keep up. The recent surge in building permits demonstrates an increasing confidence that the recovery can be sustained over the long term.