US Home Prices Reach All-Time High, Inventory Low

By
Real Estate Agent with Hart Real Estate Solutions RRE-BRO-LIC-24638

Home Prices in the United States have reached an all time high according to the National Association of Realtors. The median sale price in June for all real estate housing types reached $236,400, up 6.5% from June 2014. Not only that, that figure hit above the 2006 record of $230,400 and is an all time high.

Limited inventory and high demand have been leading to the higher prices. Home sales increased by 3.2% in June to the highest level of sale activity seen since February 2007. Steady job growth and an improving economy have been pegged as the leading cause for the high activity.

Coupled with high buyer demand, home inventory in the United States remains low. Housing inventories only saw a 0.9% increase in June, to a total of 2.3 million homes on the market. Inventory is 0.4% higher than a year ago but still remains at a 5-month supply. The supply represents how many months it would take to sell all the homes currently on the market. (Economists want to see a 6 month supply in an ideal market.)

Because of the high demand and low inventory, homes are moving extremely quickly. In June, 47% of homes stayed on the market for shorter than a month.

So long as demand stays high and home inventory continues to be low, we should continue to see rising home values.

 

Source: http://realtormag.realtor.org/daily-news/2015/07/23/home-prices-reach-all-time-high

 

 

Comments (1)

Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Tim - Rising home values are good up to a certain point. As we saw back in 2006, if home prices get too high, there could be a backlash. Eventually more people will not be able to afford homes, the demand will slow, and the inventory will increase.

Aug 14, 2015 06:54 PM