The median home price in the United States topped $350,000 for the first time in May, the National Association of Realtors said Tuesday, per The Wall Street Journal. The figure represents a 23.6 percent increase from May 2020.
The price increase is driven by a "shortage of properties and low interest rates," the Journal reports. Subsequently, sales continue to decline, though May data was "a bit better than expected," writes Liz Ann Sonders, the chief investment strategist at Charles Schwab & Co. Per Sonders, sales dropped by 0.9 percent last month, while economists had predicted a 2.2 percent decrease.
A Fannie Mae survey in May found that only 35 percent of consumers said it was a good time to buy a home, a record low in data going back to 2010, the Journal notes. "Affordability appears to be now squeezing away some buyers," said Lawrence Yun, NAR's chief economist, to the Journal. "There are so many people who have been outbid, frustrated they are unable to buy." Read more at The Wall Street Journal.