The U.S. median home list price surged in March to $300,000 for the first time ever, according to realtor.com®’s monthly housing trends report. That also marks a price increase of 7 percent year over year.
“The typical U.S. home list price has set a new high right on the cusp of the spring homebuying season, and despite a slowing growth rate, home prices will likely continue to set new records later this year,” says Danielle Hale, realtor.com®’s chief economist. “Heading into spring, U.S. prices are expected to continue to rise and inventory is expected to continue to increase, but at a slower pace than we’ve seen the last few months as fewer sellers want to contend with this year’s more challenging conditions. A buyer’s experience will vary notably depending on the market and price point they’re targeting.”
Homes priced $200,000 or below—often considered “entry-level homes”—are getting harder to find, posting a 9 percent decrease year over year.
The overall uptick in list prices in March is mostly due to the rise in inventory in the high-end market. The inventory of homes priced above $750,000 continues to increase, up 11 percent year over year.
Housing inventories are up this spring, but the rate of growth is slowing. The number of newly listed properties hitting the market fell by 0.4 percent compared to last year, “suggesting that while buyers may have more options to choose from, the share of fresh properties coming up for sale has not increased,” realtor.com® notes in its report.
The housing markets that saw the largest inventory decreases in March were: St. Louis (down 19 percent); Washington, D.C. (down 14 percent); and Oklahoma City (down 11 percent). On the other hand, the metros seeing some of the biggest upticks in inventories were mostly in pricier, West Coast markets, like San Jose, Calif. (up 114 percent); Seattle (up 77 percent); and San Francisco (up 44 percent).
Source: realtor.com®
