Housing prices in the U.S. hit a record high in March.
The median home price in the country was $405,000, according to Realtor.com’s latest Monthly Housing Trends Report, which the company published on Thursday, March 31.
Data from the report shows the record-breaking median listing price is up 13.5% from March 2021. Compared to March 2020 – the start of the COVID-19 pandemic – the current March 2022’s median listing price is up 26.5%.
Despite the record six-figure price tag, the experts at Realtor.com believe the housing market is set to “moderate” in the near future.
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“Buyer demand is moderating in the face of high costs, and we’re beginning to see more homeowners take price cuts on their listings and overall inventory declines lessen in response,” said Realtor.com’s Chief Economist Danielle Hale, in a statement.
“Assuming all these factors and new construction hold steady, we could begin to see inventory increases this summer – welcome news for buyers who have endured pandemic home shopping and can continue their journey despite higher buying costs,” Hale continued. “For buyers currently in the market, there’s good reason to aim to find a home before interest rates increase further. But if it takes longer than a few months, don’t give up hope, as there may be more to choose from in the summer months.”
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While the national listing price median for March was $405,000, home prices varied significantly in the 50 U.S. metro areas Realtor.com evaluated, which it selected based on size.
Not so surprisingly, California was home to some of the most costly home price medians in the country.
The Golden State’s San Jose-Sunnyvale-Santa Clara had a home sale median that nearly reached $1.4 million while San Francisco-Oakland-Hayward had a home sale median the $1.04 million. San Diego-Carlsbad came in third place with a home sale median of $884,000.
Outside California, Boston-Cambridge-Newton, Mass.-N.H.and Seattle-Tacoma-Bellevue, Wash. tied with a median of $755,000.
The four U.S. metros that had the lowest median home sale prices on Realtor.com’s list were Buffalo-Cheektowaga-Niagara Falls, N.Y. ($225,000), Pittsburgh, Pa. ($223,000), Rochester, N.Y. ($220,000) and Cleveland-Elyria, Ohio ($199,000).
Last year, mortgage-finance company Freddie Mac estimated that the U.S. had a shortage of 3.8 million homes, which has likely contributed to the competitive home-buying market.
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Realtor.com reports that home construction in the U.S. is near 16-year highs.