At a pace of 5.7 percent, home-price growth quickened in the final three months of 2016 (5.4 percent in the third quarter) amidst severe supply shortages in much of the U.S.
Looking at some of the year-over-year gains in several of the largest metro areas underscores just how drastic the ongoing supply shortage really is. Cities with strong job growth but not enough inventory continue to see swift price increases that far exceed incomes.
Just check out price growth last quarter in some of these metro areas:
Q4 (YoY) Price Gains
Atlanta (8.1 percent)
Austin, Texas (8.5 percent)
Boston (6.0 percent)
Charlotte, N.C., (10.3 percent)
Chicago (8.0 percent)
Dallas (11.8 percent)
Denver (7.9 percent)
Las Vegas (7.1 percent)
Miami (8.9 percent)
Nashville, Tenn. (11.6 percent)
New Orleans (10.0 percent)
Orlando, Fla (11.1 percent)
Portland, Ore. (11.3 percent)
Salt Lake City (8.3 percent)
San Diego (8.4 percent)
San Francisco (7.3 percent)
Seattle (9.9 percent)
Tampa, Fla. (14.5 percent)
It seems like we’re repeating the same thing each month, but it still rings true: the housing market needs more new and existing inventory to moderate price growth. If not, many prospective buyers will continue to face obstacles trying to reach the market.
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