The Median Existing-Home Price in the U.S. Has Reached an All-Time High
Bad news for homebuyers: Home prices in the United States have reached an all-time high. In May, the median existing-home price topped $350,000 for the first time, as reported by the National Association of Realtors per the Wall Street Journal.
This figure represents a nearly 24% increase since last year and is the largest annual increase the NAR has recorded since 1999. WSJ reports that "a shortage of properties and low borrowing rates fueled demand."
The surge is primarily due to the COVID-19 pandemic, as national lockdowns encouraged people to move in favor of more space. Similarly, remote workers used the pandemic as an opportunity to move to more affordable locations. According to the WSJ, the pandemic ignited a huge housing boom, with home sales rising to their highest levels in fourteen years in 2020. Now, there aren't enough homes on the market to meet the increasing demand.
For the fourth straight month, home sales have declined, falling o.9% from April to May of this year due to the price increase. In a survey by Fannie Mae, some 35% of consumers said it was a good idea to buy a home, a record low going back to 2010, reports WSJ. "Affordability appears to be now squeezing away some buyers," Lawrence Yun, NAR's chief economist tells the WSJ. "There are so many people who have been outbid, frustrated they are unable to buy."
Have questions about your next renovation project? We’ve got answers.
You Might Also Like
