As home prices keep rising, it’s the lowest price brackets that are being hit the hardest.
CNBC reports that home sales in the range of $100,000 or below were down 14 percent compared with a year ago, while sales of million-dollar and higher homes climbed nearly 20 percent. This drop comes because low-price home inventory has reached record lows.
"On the lower end, there is virtually no property at a very low price level anymore," said Lawrence Yun, chief economist for the National Association of Realtors. "The same property has been moved up to a different price bucket just because the prices have been rising strongly, over 40 percent price appreciation in the past five years. We are not getting the transactions on the lower end because there is virtually no inventory on the lower end."
According to the National Association of Realtors the median home price in July hit $258,300, the highest July price on record.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable