Everybody learns about supply and demand at some point in his or her educational career. The greater the demand for something and the lower the supply, the higher the cost of that product is going to be. And that is what is happening to homes and home prices right now, The Wall Street Journal reports.
According to a report from the National Association of Realtors, despite a slightly cooling demand, tight supply continues to cause home prices to accelerate.
In the fourth quarter of 2015, the national median for an existing family home grew by almost 7 percent to $222,700 compared to the same time the year prior. Florida had markets with some of the biggest gains including Punta Gorda with a 20.7 percent increase, Palm Bay with an 18.7 percent increase, and the Cape Coral-Fort Myers area with a 16 percent gain.
As far as the most expensive market, San Jose, Calif., continues to lead the way with an average existing family home price coming in just under $1 million at $940,000.
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