Housing prices reach record heights, sidelining homebuyers
(CNN) — House prices in the US are skyrocketing to new heights, keeping potential buyers on the sidelines.
“We have not seen an increase this strong in our history of the data set that does go back to the 1960s,” said Jessica Lautz, VP of Demographics & Behavioral Insights with the National Association of Realtors (NAR).
According to a NAR report, the median existing home price in May was a little over $350,000. That’s 24% higher than last year’s May median and the highest price on record.
“The really concerning part about this homebuyer market, is that we are leaving a lot of people behind. We see nearly a quarter of all transactions are all cash right now. Those are wealthy buyers,” commented Lautz.
Low inventory coupled with a huge demand is what’s driving up those prices. To put it into perspective, inventory is down 21% from last year.
“We have had more than a decade of underbuilding,” said Lautz. “We know that people didn’t feel comfortable selling last year and so they stayed in their home.”
This May, homes are selling, on average, within 17 days.
But, homeowners may soon catch a break. NAR says more inventory is on its way.
As people get vaccinated, they feel more comfortable listing.