Home Prices Hit Record Highs While Sales Plummet Amid Inventory Drought
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Home prices shot up 36% from February 2020 to February 2024, reaching a median high of $449,000 in June 2022. Prices remain high due to low inventory.
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Mortgage rates fell to unprecedented record lows during the pandemic but have since climbed back up, currently sitting at 6.81% in February 2024.
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The nation's housing inventory worsened, with 28.4% fewer listings in February 2024 compared to February 2020. This shortage is keeping home prices high.
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Existing home sales dropped 30.7% from 2019 to 2023 due to limited inventory and high prices.
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New construction is a bright spot, with new-home sales expected to grow in 2024 as builders capitalize on low existing-home inventory.