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Median Home Price At All-Time High08-03-15 | News

Median Home Price At All-Time High
Homes Sell at Brisk June Pace

The combination of a low supply of properties and heightened demand has driven up the median price of existing single-family homes to $236,400, a new record. The previous high of $230,400 was set in July 2006.

The median price for existing homes reached surpassed a record in June, another sign the housing market has heated up considerably.

Buyer demand and a limited supply have combined to drive up the median price to $236,400 "?u 6.5 percent higher on a year-to-year basis.

The old record of $230,400 was set in July 2006, according to the National Association of Realtors.

Existing homes sold briskly in June, fueled by steady job growth and an improving economy. Close to 5.50 million homes were sold last month, an increase of 3.2 percent month-to-month, and a jump of nearly 10 percent compared to June 2014. Sales were also the highest since February 2007.

On the supply side, the inventory of homes for sale remains low, increasing a scant 0.9 percent in June to 2.30 million units.

"Limited inventory amid strong demand continues to push home prices higher, leading to declining affordability for prospective buyers," Lawrence Yun, the NAR's chief economist, said.

But even though inventories are low, property sales are on the upswing. Properties typically stayed on the market for 34 days in June, the shortest number of days since the NAR began tracking his metric in 2011.

Real estate professionals are reporting drastic imbalances of supply compared to buyer demand in several metro areas, most notably in the West, said NAR President Chris Polychron.

"The demand for buying has really heated up this summer, leading to multiple bidders and homes selling at or above the asking price," Polychron said.