Home prices hit a record high

Yes, prices are still rising everyone. I get asked all the time if prices are going down any time soon and well, they aren’t…yet. You can expect prices to increase even more this summer. We had nationally an all-time high in May!

Why is this happening??? There aren’t enough houses for sale, and a shit ton of buyers. While the number of sales has dropped, prices have increased. It’s a strange time.

The houses that have hit the market are NOWHERE near close to meet the buying demands. Then causing prices to just keep going higher and higher. Also, another thing to note is houses are selling faster too, majority last less than a month on the market.

Again, the problem is not enough inventory, incredibly low supply. If this continues which signs show it will, prices will continue to increase. As long as there are 

people buying them, it seems like it’s going to be this way for a while until who knows, another crash? Only time will tell.  

May’s Housing Stats

Here’s a closer look at some of the key indicators of the housing market from NAR’s (National Association of Realtors) latest housing report:

• Home prices: The median existing-home price for all housing types was $264,800 in May, an all-time high. Home prices were up 4.9 percent from a year ago.

• Inventory: Total housing inventory at the end of May rose 2.8 percent to 1.85 million existing homes available for sale. Still, the number of homes for sale is 6.1 percent lower than a year ago. Unsold inventory is at a 4.1-month supply at the current sales pace.

• Days on the market: Properties typically stayed on the market for 26 days in May, down from 27 days a year ago. Fifty-eight percent of homes sold in May were on the market for less than a month.

• First-time home buyers: This segment comprised 31 percent of sales in May, down from 33 percent a year ago.

• All-cash sales: All-cash sales accounted for 21 percent of transactions in May, down from 22 percent a year ago. Individual investors tend to make up the bulk of cash sales. They purchased 15 percent of homes in May, down from 16 percent a year ago.

• Distressed sales: Foreclosures and short sales made up 3 percent of sales in May, the lowest reading since NAR began tracking such data in 2008. Distressed sales are down from 5 percent a year ago. In May, 2 percent of sales were foreclosures and 1 percent were short sales.

This 2 bedroom 1 bath home sold in the Willow Glen Area for $1,100,000 a total of $201,000 over asking price!! WOW! If you have been thinking about selling, the time is now!! 

Thank you for reading, xx

-Damaris Sanchez