Here's some pleasant news for potential homebuyers across the nation: Real estate investment site HomeUnion says the U.S. housing market shows signs of flattening.
According to a new report, the median price of owner-occupied homes in the U.S. declined slightly in March 2016, down 1.1 percent from the previous year to $234,300. HomeUnion anticipates this trend will continue through the typically busy spring homebuying season. "Housing affordability has pushed beyond incomes in many areas of the country, limiting demand at today’s prices despite low interest rates," says Steve Hovland, director of research.
Investment properties, however, are another story. The median price of investment homes in America (those not occupied by the owner), grew 8.5 percent year-over-year to $192,600. "Since last August when volatility set into the global stock markets, investors have been repositioning their portfolios to hedge against uncertainty and find stable yields," Hovland explains. "We’re seeing that demand translate into higher investment home prices."
In Dallas-Fort Worth, owner-occupied home prices are bucking the national trend, which is good for sellers, not so good for aspiring homeowners. According to HomeUnion's data, the average owner-occupied home price is up almost 6 percent from last year to $225,000. Investment home prices have increased almost 5 percent to $145,500.
The story is similar in Austin, where owner-occupied home prices are up almost 9 percent and investment properties are up 12 percent.
Only Houston mirrors the national trend, with a 1 percent decrease in owner-occupied home prices and a 5 percent increase in investment home prices. It's a good time to be a buyer in San Antonio, where owner-occupied home prices remain unchanged and investment prices have taken an 8 percent dive.