A recent article in USA Today refers to a new forecast that says home (which includes condos) prices will increase an average of 4% a year for the next 5 years.
U.S. home prices could rise 4% a year, forecast says
By Julie Schmit, USA TODAY on USAToday.com
We’ve definitely been noticing a tighter inventory lately (we’re at about a 4 month inventory for homes and a 5 month inventory for condos right now in Pinellas County) and more condos and homes being fought over by buyers. Plus the median price for a condo is up almost 8% from last April and the median price for single family homes are up about 12% from last April.
The article points to Florida as one of the areas noticing a recovery in more cities than other states.
Meanwhile, Realtor.com says Florida has more cities than any other state that show the strongest signs of a housing recovery. Read the full article on USAToday.com.
There are a lot of good points in this article that explains in part why some areas are seeing price increases and will likely continue to see them.
Buyers have to get off the fence now to get the condo or home they’ve wanted while they can still get them at the low end of the market. But many are learning the hard way that they have to be prepared to pay closer to asking price and act quickly if they want to get the remaining good deals that are available.