IRVINE, Calif., Aug. 18, 2016 /PRNewswire/ -- HomeUnion, an online real estate investment management firm, has released new data on the U.S. housing market that shows median prices for investment housing growing at a faster rate than owner-occupied home prices. According to the new HomeUnion Home Sales Report, prices for investment housing – both financed and all-cash – jumped 7.1% to $213,300, while the median price for owner-occupied homes increased 4.0% to $274,500 in July.
"Investor demand for single-family rentals (SFRs) remains strong, as evidenced by the overall decline in cap rates in July," explains Steve Hovland, director of research for HomeUnion. Cap rates for all types of investment housing dropped 50 basis points to 5.1%, cash cap rates retreated 60 basis points to 6.0% and leveraged investment cap rates declined 20 basis points to 4.4%.
"Overall, the housing market remains solid, although we've started to see evidence of moderating price growth nationwide," says Hovland. "This slower price growth is correlated to the seasonality of the housing market: we're are coming off a frenzied spring buying season that is beginning to cool." Although home prices are expected to decline in the fall months, the overall supply/demand imbalance will keep values elevated and many first-time buyers on the sidelines. As a result, downward pressure on the already record-low home ownership rate will persist through the end of the year.
Here are more details on the current state of the U.S. housing market: