Also recently, DataQuick, San Diego, released its July Property Intelligence Report, showing home prices increasing at an average of more than 13 percent over the past year.
The report said 25 of the 42 markets measured experienced home price increases in excess of 10 percent, with reporting counties ranging from an under 1 percent increase in Suffolk County, N.Y., to a more than 30 percent price increase in Sacramento County, Calif.
DataQuick Vice President of Analytics Gordon Crawford said the strong home price growth was driven by a decrease in both foreclosures and overall property availability, as total monthly home sales tapered from the previous reporting period. However, Crawford noted sharp home price increases amidst low sales volumes could be a cause of concern to overall recovery.
“We are seeing a direct correlation between home price appreciation and sales growth, as markets with the largest decrease in overall sales are those experiencing the most rapid increase in home prices,” Crawford says. “While economic drivers including job growth and low interest rates are contributing to increases in demand nationwide, prices in markets with tight supplies of available properties are skyrocketing. The main concern in this situation is that it is unclear if strong home price increases would be happening in the presence of more normal sales volumes.”
The report said home price growth was positive in all 42 reported counties over the past month and year, and positive in 41 of the 42 reported counties over the past quarter. Sales increased in 29 counties over the past month; in 37 counties over the past quarter; and in 28 counties over the past year. Foreclosures decreased in 31 counties over the past month; in 26 counties over the past quarter; and in 28 counties over the past year.