For the first time, the average home listing is now priced at $300,000, according to a new report—a critical development heading into prime real estate season.
The increase is potentially a precursor to other price records, says Danielle Hale, chief economist at realtor.com.
“The typical U.S. home list price has set a new high right on the cusp of the spring home-buying season, and despite a slowing growth rate, home prices will likely continue to set new records later this year,” Hale says.
According to the S&P CoreLogic/Case-Shiller National Index, which assesses the largest markets, last March’s prices had risen 6.5 percent year-over-year. In January of this year, they had risen 4.3 percent.
Expanding high-end inventory is keeping momentum from outright stalling. In the past year, the amount of for-sale homes in the $750,000-plus range has risen 11 percent, according to realtor.com’s report. The amount of listings on the other side of the spectrum, in the $200,000 and under tier, has tumbled 9 percent.
For first-time homebuyers, the deficit at the entry level is troubling, but how much so remains to be seen this spring. According to RISMedia’s 2019 Power Broker Report & Survey, first-timers are the No. 1 opportunity for Power Brokers, and their challenges—affordability, namely—were perceived as a problem by just 3 percent of respondents to the survey.
Inventory overall has sprung up 4 percent, with 56,000 fresh listings in March, according to realtor.com’s report. The biggest jumps were in San Francisco and San Jose, Calif., and Seattle, Wash.
“Heading into spring, U.S. prices are expected to continue to rise and inventory is expected to continue to increase, but at a slower pace than we’ve seen the last few months as fewer sellers want to contend with this year’s more challenging conditions,” says Hale.
Given the hyperlocal nuances in real estate, circumstances will dictate outcomes this spring, less so than the national trend, Hale points out.
“A buyer’s experience will vary notably depending on the market and price point they’re targeting,” she says.
For more information, please visit www.realtor.com.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at email@example.com.