U.S. home prices have a hit a record high across the nation, up 23.6% in May to a record $350,300 compared to last year $283,500.
An increase of $66,800 which can be contributed to last summers lockdowns across the nation with many individuals seeking bigger homes. Others who worked remotely saw the opportunity to relocate to a less expensive city as well. May has marked a difficult time for so many seeking a new home, with an increase in home prices nationwide, there has been a decline in sales.
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“It’s become clear that record-high price growth and an enduring shortage of available homes are beginning to hinder would-be homebuyers,” said Matthew Speakman, an economist at Zillow. According to Reuters, “Sales volume continues to struggle to regain the momentum it built late last year.” Others have a deep fear of reliving the 2008 financial crisis all over again but economists experts have a different perspective, “Economists do not believe another housing bubble is developing, noting that the surge is being mostly driven by a mismatch between supply and demand, rather than poor lending practices, which triggered the 2008 global financial crisis. But the rapidly rising prices could feed inflation,” WKZO News reports.
This Wednesday the Census Bureau will be releasing a new residential sales report. This next look at new home construction should report an estimate of adjusted annual rate of new-home sales. As according to census data released last week, “The seasonally-adjusted annual rate of housing starts rose 3.6% compared to April and was 50.3% higher than the same month last year. Permits, which can indicate future housing starts, fell 3% compared to April’s rate,” Barron’s News reports.