Rising Home Sales Prices Are Squeezing Affordability
The spring selling season for the housing market kicked off with record-high prices for new homes. But how long will the surge last?
Data from a report released by the U.S. Department of Commerce on May 24 shows that the median selling price of new, single-family homes soared to a record $321,100 in April, up 9.7 percent from the same month last year. The median price for these newly constructed homes jumped by 7.8 percent between March and April of this year. The average sales price of these homes in April was $379,800.
New home sales are at their highest level in eight years, according to the agency. “An eight-year high in new home sales suggests the U.S. housing market is returning to more solid footing as we head further into the second quarter,” Lindsey Piegza, chief economist with Stifel Nicolaus, writes in a research note.
The seasonally adjusted sales volume for new homes in April was 619,000, which was the highest since January 2008.