Existing home sales rose 4.2% in May to a level of 5.2 million nationwide. This is the highest level of existing home sales since 2009.
Prices for housing also continue to rise rapidly. The media price nationwide is now $208,000 which represents more than a 15% increase over a year ago.
The popular real estate website Zillow.com reports that Atlanta remains a red-hot market with average home values jumping 4.7% in May.
However, the soaring values may not last.
According to a report in the Atlanta Business Chronicle, real estate economists see the increases slowing down soon. “Enjoy it while it lasts, because the housing market will undoubtedly look very different a few years down the road from how it appears now,” said Zillow Chief Economist Stan Humphries. “Inventory constraints are beginning to ease in many areas as more listings and new homes come on line, which will ultimately help end this period of rapid annual home value appreciation above 5 percent. Additionally, as interest rates begin to rise from their historic lows, some demand may also ebb from the market as home purchases become more expensive to finance. While we believe the housing recovery will remain strong, home value appreciation will slow down, and buyers in it for the short term could get burned if they assume home values will continue rising as they have unabated.”