June 24, 2021
Affordability appears to be now squeezing away some buyers.Chief economist Lawrence Yun, National Association of Realtors, on record home prices.
- Two data points often reflect home prices/sales: Existing home sales (homes already built) and new home sales (homes never lived in).
- Existing homes make up a larger portion of the market (more than 90%).
- The latest data shows existing home sales at the highest point ever in data collection by the National Association of Realtors (dating back more than two decades) – with median prices nationwide over $350,000 for the first time.
- Why This Matters: Home prices are at record levels but home sales (of both new and existing homes) are down, in part because of these high prices. Home prices continue to increase as inventory falls (when there is a lot of demand, but low supply, prices rise). As home sales slow, this has the potential to impact other parts of the economy, such as retail sales, durable goods (purchases of items like washing machines) as fewer people move and put fewer new things in their homes!
Here’s a good read on the topic: REAL ESTATE
by Jenna Lee,