According to the National Association of Realtors, the median price of an existing home reached $252,800 in May, a new all-time high, and a 5.8 percent increase from last May.
CNBC points out that, since the figure is a median, half of the nation’s existing homes sold for more than 252 grand, a price that is out of reach for many Americans who are struggling to afford a home.
Sales of existing homes priced below $100,000 dropped 7 percent year-over-year, and sales between $100,000 and $250,000 rose only 2 percent. Sales of homes priced above $500,000, however, jumped 20 percent.
The crunch for affordable homes is being exacerbated by opportunistic investors who snatched up existing single-family homes and turned them into rentals.
There are very few low-priced homes for sale, and far more expensive homes for sale. Homebuilders may claim they are increasingly targeting that first-time buyer, but their price points even for entry-level homes are still mostly above $200,000.