Median U.S. Home Price Hit a New Record High in June
July 23, 2021
Strong demand and historically low inventory continued to push house prices higher in June, setting a new record. The median price for an existing home climbed to $363,000 in June. That is an increase of 23.4% from a year prior, according to the National Association of Realtors (NAR).
Despite higher prices, sales continued. Existing-home sales increased 1.4% in June over the previous month to a seasonally adjusted annual rate of 5.68 million units, an increase of 22.9% from the same month a year earlier, according to NAR data.
There is some sign that the housing boom may be beginning to slow. There were 1.25 million homes for sale at the end of June, 3.3% more than at the end of May. That is still 18.8% lower than the number for sale at the end of June 2020, however, and despite the small uptick in available homes, inventory remains strained. At the current pace of sales, there was a 2.6-month supply on the market, well below historical norms.
Even if supply increases, the NAR expects price pressure to remain so long as ultra-low mortgage rates are fueling demand. The typical home sold in June was only on the market for 17 days, a record low.