According to the Realtor.com May housing data, the median price of homes for sale this May remained relatively stable growing from $441,000 last year to $442,500 this year, a slight increase of 0.3 percent. However, a closer look at median price-per-square foot, which can be seen as a better indication of home value, shows an increase of 3.8 percent.
When looking at pre-pandemic levels, nearly half of the 50 metros included in the report saw an increase in median price-per-square foot of at least 50 percent since 2019. The top metros seeing massive changes were New York (84.7 percent), Boston (72.9 percent) and Nashville (68.6 percent). San Diego was also among the top 10 markets.
The median list price nationally in May increased 37.5 percent since May 2019, while inventory fell down 34.2 percent compared with typical 2017-2019 levels.
“In addition to higher median list prices and fewer homes for sale versus 2019, the increase in median price-per-square foot suggests that the typical home on the market today is worth 52.7 percent more than before the pandemic, more than double the roughly 23 percent increase in consumer price inflation in this period.” said Danielle Hale, Chief Economist at Realtor.com. “The specifics will vary from market to market, but the data suggest ongoing opportunity for many sellers. Though with mortgage rates still much higher than many existing homeowners enjoy, this opportunity favors sellers who don’t have to replace a mortgage, such as investors or second homeowners looking for an exit, or equity-rich homeowners looking to downsize in their current area or to a lower-cost region, as well as those planning to rent their next home.”
