May Prices Reached Record Highs
U.S. prices surged to an all-time high and homes sold faster than they ever have in May, according to a new report released by realtor.com®. Home prices averaged $297,000 in May, and homes sold in just 55 days.
Despite recent upticks, however, the market is showing a few signs of slowing momentum, according to the report.
“We’re in the thick of the hottest homebuying season of all time,” says Javier Vivas, director of economic research at realtor.com®. “The pace of U.S. home sales has officially reached a seasonal and historical high, but we’re also beginning to see slight signs of deceleration.”
More listings are coming onto the market, which may offer some hope to frustrated home buyers who have faced limited choices, Vivas says. The inventory of homes for sale rose 6 percent in May compared to April.
“Even as inventory recovers, the mix of what’s available versus what shoppers are looking for could become an even more pronounced mismatch,” he says. “Total listing volume remains highly dependent on new construction, much of which is still out of the price range of first-time buyers—the largest segment of buyers.”
Rising home prices also show few signs of slowing. “Unfortunately for buyers, median list prices continue to show strong yearly growth and fail to hint that home values will stall any time soon,” Vivas says.
Source: Move Inc.
Daily Real Estate News | Thursday, May 31, 2018