House Prices Jump 6.2 Percent in 2Q to Eclipse 2016 High

Existing home prices maintained their “robust” growth in the second quarter by jumping 6.2 percent, the National Association of Realtors reported.

The national median existing single-family home price equaled $255,600 in the second quarter, surpassing the former peak of $241,300 set in third-quarter 2016.

The median price during the first quarter increased 6.9 percent compared to first-quarter 2016.

NAR Chief Economist Lawrence Yun said prices jumped in the second quarter because supply remained at “pitiful” levels. “The 2.2 million net new jobs created over the past year generated significant interest in purchasing a home in what was an extremely competitive spring buying season,” he said. “Listings typically flew off the market in under a month–and even quicker in the affordable price range–in several parts of the country. With new supply not even coming close to keeping pace, price appreciation remained swift in most markets.”

Yun noted an increasing share of would-be buyers are being priced out of the market.

“Household incomes may be rising and giving consumers assurance that now is a good time to buy, but these severe inventory shortages will likely continue to be a drag on sales potential the second half of the year,” Yun said.