Home prices are so high, not even low mortgage rates put them within buyers’ reach.
The median sale price for most existing single-family homes was higher in the first quarter of 2021 than it was a year ago, thanks to high demand and limited inventory, according to data from the National Association of Realtors, first reported by the Wall Street Journal.
Across the country, the median existing home sale price rose by 16.2 percent to $319,200, the highest it has been since 1989, according to NAR.
Of the 183 metro areas tracked by the trade association, only one didn’t see prices increase year-over-year. That would be Springfield, Illinois, where prices dipped by 2.4 percent.
The other 182 others, however, saw prices soar, with 89 percent of seeing increases of more than 10 percent from the previous year.
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Vacation home prices were among the highest of increases as people left cities in favor of places with more space. One such town, Kingston, New York — located in the hot Hudson Valley — saw its median sale price swell by 35.5 percent compared to last year.
Bridgeport, Connecticut, was next with a 34.3 percent increase, followed by Atlantic City, New Jersey, which grew by 34 percent, the publication reported.
The good news: As more buyers are priced out of the market, economists expect prices to slow down, the publication reported. Unfortunately, future demand might continue to exceed supply thanks to fewer homes available.
[WSJ] — Cordilia James