According to the National Association of REALTORS®, the median sales price of a home is at an all-time high right now because of a number of factors. NAR Chief Economist Lawrence Yun said that can be viewed as both good and not-so-good news. On one hand, current homeowners looking to sell their home and upgrade to something bigger or better can now sell their home for more, gaining equity for the downpayment on their next home. On the other hand, rising home prices make it more difficult for first-time, younger buyers to enter the market, as they don’t have equity from a previous home and are struggling to save as it is. As the homeownership rate is currently at a 25-year low, Yun said this could contribute to a more unequal wealth distribution.
Review NAR’s June existing-home sales report and Yun’s blog post on rising home prices. Talk to a REALTOR® to see if home prices are rising in your area. Speak with would-be buyers looking to buy their first home to see if home prices are affecting their decision and someone looking to sell a home to get that perspective.