Home Prices Remain Strong- currently 21 percent of all homes are sold ABOVE listing price

[GON]

As the title states "Home Prices Remain Strong".

BLUF- homes prices continue to rise, despite unaffordable prices for many potential buyers, and interest rates above six percent

Going through a National Assocation of Realtors (NAR) article, a few key items stand out:

• The number of homes on the market is increasing over last year at this time, but overall market and prices are staying strong
• 21 percent of homes are sold for MORE than the asking price (one in five homes are selling above listing price)
• Median price for an existing home increased 3.8% to $398,400 in February 2025 (year over year)
• All four major regions of the U.S. recorded price gains last month, led by a 10.4% annual increase in the Northeast.
• Recent uptick in inventory shouldn’t dampen home prices. “The ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.
• Buyer demand remains strong despite cost pressure.
• In February, about 50% of agents say their listings sold in less than a month.

https://www.nar.realtor/magazine/re...gs-home-buyers-back-to-the-real-estate-market

 

[alarmguy]

Yep, my daughter bought her first house on her own, with no help from us three weeks ago.

My son is putting his house up for sale and buying something larger as of this week the decision was made.

Life is good in the USA

 

[rszappa1]

Yep, my daughter bought her first house on her own, with no help from us three weeks ago.

My son is putting his house up for sale and buying something larger as of this week the decision was made.

Life is good in the USA

Unless you own your home and keep getting increases in property tax because of increased value...

 

[alarmguy]

Unless you own your home and keep getting increases in property tax because of increased value...

That is a local issue and always has been.
As a general increase value does not necessarily increase your taxes.
Adjustments are made meaning the voters of the officials they vote for do not collect, let’s say 20% more money from a house that went up 20% in value.
That would be increasing their budget 20% across the board. It doesn’t work like that.

Here is a general idea. I just ran across the story of the area that I grew up in and lived much of my adult life.
Even though over the years house prices are up 50, 60, 70, 80%
The tax bill on a modest home near where I grew up would still be roughly in the range of $11-$13,000 a year in spite of the home value increases

Now you would be correct if let’s say you expand the home that you live in and increase its value more than the surrounding homes absolutely, your taxes will go up significantly

 

[alarmguy]

Deleted

 

[rszappa1]

That is a local issue and always has been.
As a general increase value does not necessarily increase your taxes.
Adjustments are made meaning the voters of the officials they vote for do not collect, let’s say 20% more money from a house that went up 20% in value.
That would be increasing their budget 20% across the board. It doesn’t work like that.

Well here in Louisville it sure does....Since housing has gone up a lot over the past 5 to 8 years property taxes have gone up a lot...So much so that some seniors cannot afford the increases in there property tax...

 

[alarmguy]

Well here in Louisville it sure does....Since housing has gone up a lot over the past 5 to 8 years property taxes have gone up a lot...So much so that some seniors cannot afford the increases in there property tax...

I’m not disagreeing with you, but that is your local area in increasing the amount of money they take in taxes. So you’re saying house prices are up let’s say 25% and people are getting 25% increases in their tax bill. That means your local officials are in increasing taxes 25%.

 

[rszappa1]

I’m not disagreeing with you, but that is your local area in increasing the amount of money they take in taxes. So you’re saying house prices are up let’s say 25% and people are getting 25% increases in their tax bill. That means your local officials are in increasing taxes 25%.

but I dont think that it is just a louisville thing....I think that it is going on all over the usa....

 

[alarmguy]

I found this article interesting on Long Island, New York.
Truly amazing the increase in value, but the taxes do not increase proportionally to the increase in value of the house unless you make your house larger and bigger than all the surrounding homes in your area.

Taxes are insane on Long Island but they always have been. The person paying on average 12 or $13,000 a year is still paying maybe at most 10% more with close to a doubling in house price.

Suffolk County was always the more affordable option because it is further from the city.
One might look at Nassau County is a bit more wealthy with corresponding higher house prices

https://nypost.com/2025/03/18/us-news/heres-where-long-island-homes-are-hitting-record-prices/

..

 

[rszappa1]

I found this article interesting on Long Island, New York.
Truly amazing the increase in value, but the taxes do not increase proportionally to the increase in value of the house unless you make your house larger and bigger than all the surrounding homes in your area.

Taxes are insane on Long Island but they always have been. The person paying on average 12 or $13,000 a year is still paying maybe at most 10% more with close to a doubling in house price.

Suffolk County was always the more affordable option because it is further from the city.
One might look at Nassau County is a bit more wealthy with corresponding higher house prices

https://nypost.com/2025/03/18/us-news/heres-where-long-island-homes-are-hitting-record-prices/

but the city of new york and the state are heavily taxed anyway in there income tax....thats why a lot of people and busineses have moved out of state..

 

[alarmguy]

but I dont think that it is just a louisville thing....I think that it is going on all over the usa....

I think you were misunderstanding how property taxes are administered. The rate is adjusted on taxes, collected to account for the increase in your local county and city taxes. It is not adjusted on the price of your house.
A perfect example is my link above this post.
On Long Island house prices have increased EZ 50% and 13% in the last year alone. Just because Home prices increased 13% from last year does not mean the property tax goes up to 13%.

 

[nomas]

Home sales are slow around here .

 

[alarmguy]

but the city of new york and the state are heavily taxed anyway in there income tax....thats why a lot of people and busineses have moved out of state..

This has nothing to do on how property taxes are applied to your home. You could start another thread on it.
As far as Long Island, obviously not enough people are moving out when the median house price is $700,000 to $800,000

 

[GON]

Home sales are slow around here .

Where is here? What is your definition of slow sales?

 

[nomas]

Where is here? What is your definition of slow sales?

South Louisiana . Houses are sitting on the market and prices are being lowered to move them . New developments are doing ok but older homes are taking a while to move .

 

[alarmguy]

South Louisiana . Houses are sitting on the market and prices are being lowered to move them . New developments are doing ok but older homes are taking a while to move .

This makes sense. Many areas in the country with a lot of new homes going on the market or in direct competition with people with used homes.
New homes are far more efficient and do not require maintenance expenditures for a very long time

My son, who’s looking to buy a larger home right now. The deals by the production builders are almost impossible to ignore compared to the people who want to sell their resale home.

 

[SC Maintenance]

Where is here? What is your definition of slow sales?

Everywhere. 2024 was the worst closing year since 1995, when the population was much smaller.

I am sure there are hot spots. There were even in 2009

https://www.thetruthaboutmortgage.com/existing-home-sales-fall-to-lowest-level-since-1995/

 

[alarmguy]

Everywhere. 2024 was the worst closing year since 1995, when the population was much smaller.

I am sure there are hot spots. There were even in 2009

https://www.thetruthaboutmortgage.com/existing-home-sales-fall-to-lowest-level-since-1995/

For the statistic people, this is a great source.
For example, new home sales on average of pretty much unchanged for the last seven years.
It helps to take a look at the big picture.
Including existing Home sales were up almost 10% in 2024 December

The market is soft, obviously which is what the vet has been trying to do by cooling down the economy
this is a better representation
https://fred.stlouisfed.org/tags/series?t=housing;sales

….

 

[GON]

South Louisiana . Houses are sitting on the market and prices are being lowered to move them . New developments are doing ok but older homes are taking a while to move .

Makes sense. South Louisiana has some of the most affordable homes in the U.S., not sure the reason, but fully acknowledge your observations.

Wife and I happen to come across a home we thought was awesome in Slidell, LA. Had almost every feature we want, except land and a large garage- home was waterfront, so often large garage and land are not commonly available with waterfront. We like the home enough to consider making an offer- but the home was quickly under contract.

Our observation- nice homes, regardless of the market, often go under contract very quickly.

Of note:
The Louisiana housing market is pretty competitive. The median home sales price in January 2025 has increased in the past 3 months to $252,600. That’s up 3.5% and $8,500 higher than January 2024 of last year. That is higher than the national median home sales price of $437,923. Homes typically sell after 74 days on market, which is slower than the national average and lower than 75 days in January 2024 a year prior.
https://www.bankrate.com/real-estate/housing-market/la/

This was the home we liked in Slidell:
https://www.trulia.com/home/4080-marina-villa-e-slidell-la-70461-121936295

 

[joekingcorvette]

There are so many apartments around and lot's of people are in the market for a home or land.