The average home price of a former home in the United States hit a record high of $ 350,000 for the first time in May as a shortage of single-family homes made it a seller’s market.
This is what is known as “seller market”.
The average price of a former home in the United States exceeded $ 350,000 for the first time in May, up 23.6% from a year earlier, the National Association of Real Estate Agents (NAR) said on Tuesday.
Last month, each region of the country saw an increase in the sale prices of existing homes, marking 111 consecutive year-on-year profits, starting in 2012.
Last month’s house price hike was due to continued mismatch between supply and demand, a sign of growing wealth and income inequality as the country’s economy continues to recover from last year’s COVID strike.
The market is in turmoil among home hunters who continued to work during the epidemic and saw their wealth grow from a growing stock market, helping them to accumulate prepayments. They also want to take advantage of historically low interest rates to boost the nation’s labor market, pledge real estate mortgages.
This has put sellers in the driver’s seat as impatient home buyers struggle to make ends meet. But this imbalance of power has kept some future buyers by the side, waiting for the heat that the nation’s hot market will release.
External buyers, along with inventory shortages, are helping to explain why existing home sales fell 0.9 percent in May from April, marking the fourth straight month of decline. But compared to the same period a year ago, sales increased by 44.6%.
“Home sales declined moderately in May and are now approaching pre-epidemic activity,” said Lawrence Yoon, chief economist at NAR. “The lack of inventories remains the predominant factor holding back home sales, but falling affordable prices are simply pushing first-time buyers out of the market.”
First-time buyers accounted for 31 percent of home sales in May, while individual investors or second-time home buyers accounted for 17 percent.
As a sign that large, institutional investors who want to steal property and rent it for profit continue to be active in the market. Last month’s total cash sales accounted for 23% of transactions. That was 25 percent less than the previous month, but 17 percent more than the same period a year earlier.
The total inventory of apartments at the end of May amounted to 1.23 million units, which is 7% more than the inventory in April, but 20.6% less than last year.