The firm recently reported a 1.1 percent annual jump in prices and a 2.2 percent monthly increase, including distressed sales, marking the first pair of consecutive increases since June 2010. When distressed sales are discounted, prices grew 2.6 percent during the month and were up 1.9 percent from a year before. These findings suggest the housing market is stabilizing, according to the report.
As supply falls and is expected to remain restricted given low national construction rates, the industry’s future may be looking brighter. Investors may see their best opportunity to purchase single-family homes waning as prices grow. At the same time, higher purchase costs amid a struggling jobs market and economy may encourage Americans to continue their recent trend of seeking to rent housing rather than buy a home.
Property management companies may see fewer homes being added to the pool of single-family rentals. Of the top 100 statistical areas by population, 44 experienced year-over-year price declines, according to the report. This is down from 54 the previous month.