Home prices have skyrocketed nationwide in the U.S. during the second quarter, compared to last year.
This massive increase in worth is due to a jump in demand, along with demand, a low number of houses on the market, and record low mortgage rates.
The Wall Street Journal reported, The median sales price for single-family existing homes was higher in the second quarter compared with a year ago for 182 of the 183 metro areas tracked by the National Association of Realtors, the association said Thursday. In 94% of those metro areas, median prices rose by more than 10% from a year earlier.
Nationwide, the median single-family existing-home sales price rose 22.9% in the second quarter to $357,900 from a year ago, a record in data going back to 1968, NAR said.
On top of this, at least 12 metro areas have also reported that their home prices have increased by 30% year over year.
“Any disincentive to produce more housing inventory, such as extending the eviction moratorium, will only worsen the current shortage,” NAR chief economist Lawrence Yun said in a statement.
Recently, Biden has been advocating to continue the rent moratorium. This moratorium would allow people to build a dependency on the government, and further reduce available homes and drive prices up.
Yun warned that monitoring the housing supply will be critical to moderating the growing costs.