A new record for median home prices has hit amid low inventory and intense market demand. According to data, the median home price reached $319,769 in the 4 weeks prior to September 27th. This represents the largest annual uptick since August 2013 with a 14% year over year increase.
As an added bonus, the average sale to list price ratio (how close a home sells to its asking price) climbed to an all-time high of 99.4%
How did this come about? The coronavirus created pent up demand by producing an unusual halt in the annual flurry of spring homebuying. This, in turn, sent spring-like activity beginning at the start of summer and continuing through summer and into fall.
Homeowners have had it pretty good for a while now. Can higher home median prices keep rising at this rate? Although the market is still red hot, the rate of growth appears to be slowing and the peak of price growth is being reached.