YOUNGSTOWN, Ohio (WKBN) – The average price of homes in the U.S. hit a milestone.
For the first time ever, the average price of a house rose to an average of $400,000, according to a report from the National Association of Realtors.
While May saw a big cool-off in the housing market due to rising interest rates, experts think the $400K mark is the top of the mountain.
Existing home sales declined for the fourth straight month in May at 3.4% and 8.6% from one year ago.
The average home price of about $400,000 is a 14.8% increase from one year ago.
Inventory, which is a major factor fueling the volatile market, rose to 1.6 million by the end of May. More houses mean less of a frenzy.
“Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after two years of gangbuster performance,” said NAR Chief Economist Lawrence Yun. “Also, the market movements of single-family and condominium sales are nearly equal, possibly implying that the preference towards suburban living over city life that had been present over the past two years is fading with a return to pre-pandemic conditions.”
The number of first-time home buyers also decreased last month to 27%, down from 28% in April and 31% one year ago. All cash transactions accounted for 25% of sales, down from 26% in April and up from 23% a year ago.
A stable factor is that foreclosures, short sales and “distressed sales” represented less than 1% of sales in May and is unchanged from April, cooling some fears that a housing bubble is on the horizon.
According to a recent survey by Angi (a merger of Angie’s List and Home Advisor), 42% of homeowners said they would rather invest in remodeling their home than selling it right now. Also, only 16% of people said they would still consider listing their home at this time.