Home prices have been rising steadily now for more than two years, but suddenly the gains are accelerating. This is yet another turnaround in what is fast becoming an undulating national home price picture.
Prices had jumped so far so fast in 2013, largely due to investor demand on the low end of housing, that affordability weakened and sales waned pretty significantly by the start of 2014. Prices then reacted, still gaining, but the national values began shrinking steadily.
The result was a resurgence in home sales last summer and into the fall. Low mortgage rates also contributed to demand. Supply, however, was not and is not keeping up with new demand, and so the vicious circle begins once again. Shrinking supply in markets large and small across the country is resulting in bidding wars, re-accelerating prices.