Residential property prices, sales volume continue to climb

April 17th, 2013

Home selling velocity reached its highest level on record in March.

Home prices continue to strengthen in top metropolitan areas across the country at the same time that sales volume is beginning to swell, a new report indicates.

Real estate broker Redfin released the results of its Real-Time Home Price Tracker for March 2013, and the findings indicate that housing market recovery is continuing to surprise analysts. March home prices in the top 19 metropolitan areas rose 15 percent on a year-over-year basis. This is good news for homeowners seeking to build equity in their property as well as owners who went from underwater mortgages to a positive equity position.

The study also found that home-selling velocity reached its highest level in history. Approximately 34.8 percent of homes went under contract within 14 days of being placed on the market. Further, closed home sales increased 25 percent from February to March.

Cities in California, one of the hardest-hit areas during the housing crisis, were the fastest-selling home markets in the country and include San Francisco, Los Angeles, San Jose and Ventura. While some markets are recovering more quickly than others, nearly all states across the country have experienced notable gains in the housing sector.

A recent Zillow report found that buying was more affordable than renting in 100 top metropolitan markets, and many potential buyers are participating in the market at greater rates before home prices climb too high.