According to the National Association of Realtors' Q1 2018 report, housing inventory is near record lows, pushing median home prices up. Existing single-family home prices rose 5.7 percent YOY.
Existing home prices were up in 91 percent of the markets the NAR measured, meaning that this is no isolated, regional trend. As for inventory, it's down 7.1 percent nationally YOY, per HousingWire. NAR Chief Economist Lawrence Yun says, “Realtors in areas with strong job markets report that consumer frustration is rising," adding, "Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.”
“Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018,” Yun said. “Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year’s tax cuts. It’s simple: home builders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability,” he said.
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