The housing market is in a strange place right now. Interest rates for 30-year fixed mortgages are below 3%. This is good news for potential homebuyers since lower interest rates translate to paying less in interest on their home loans over time. On the other hand, the current home shortage tends to favor sellers, who can expect to get the list price or maybe more should buyers get into a bidding war. This odd mix of low interest rates, high demand and short supply have combined to drive up home prices, especially in five U.S. states.
A recent report by CoreLogic provides a general overview of national home prices. The big takeaway? Prices are going up, but not for much longer. Perhaps the more interesting piece is looking at the five states where home prices have risen the fastest in the past year:
Surprised? One might expect to see California, Texas or New York in the top five. However, there are specific reasons why states like… Read More