The median price of an existing home increased in 89 percent of all U.S. metro areas over the last year, according to Realtor.com.
A Q4 report from the National Association of Realtors also indicates that sales prices in most markets have surpassed previous highs. Nationally, the median sales price of an existing house jumped to $235,000, up 5.7 percent from a year ago.
A lack of available homes is the main reason for the price surges. At the end of last year, only 1.65 million homes were available for sale, which is the lowest level since NAR began tracking by house types in 1999.
“The inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market,” said Lawrence Yun, chief economist at the National Association of Realtors.