Home Prices Hit a Record

U.S. home prices reached a record high in the second quarter, according to The Wall Street Journal (subscription).

The numbers: Compared to last year’s rates, the median sales price was higher for 184 out of 185 metro areas, as tracked by the National Association of Realtors.

“The median single-family existing-home sales price rose 14.2% in the second quarter from a year ago to $413,500, a record, according to NAR.”
“Median prices rose by more than 10% from a year earlier in 80% of the 185 metro areas, up from the first quarter when 70% of metro areas reported double-digit-percentage growth.”

Why it’s happening: Supply chain issues and labor shortages have slowed the construction of new homes across the country, while homeowners have been reluctant to sell in a chaotic market. Meanwhile, housing economists note that home prices have exceeded wage gains for many people, while rising mortgage interest rates are forcing potential buyers out of the market.