Home prices continue to climb, and the country’s median sale price reached a record of $239,700 in May — a 4.7% increase from the same month last year! The previous peak in home values occurred in June 2015, when they reached $236,300. Prior to that, the highest level was in July 2006.
Realtor.com’s chief economist, Jonathan Smoke, blames the imbalance between supply and demand. “The price increases are a natural result of the very strong demand for homes against very limited homes for sale,” Smoke explains. Home prices may cool down after Labor Day, when school is back in session and parents are less likely to move.
The good news, of course, is for homeowners. As the National Association of Realtors explains, “More homeowners are realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize.”