If you’re in the market for a new home, there’s new data that could explain why you might have a hard time finding the perfect house or condo in your price range.
That’s because the median price of a home sold in the U.S. hit an all-time high in June.
Home prices hit an all-time high
According to ATTOM Data Solutions, single family homes and condos sold for a median price of $231,000 in June 2016, which is up 9% from a year ago. The previous peak was $228,000 in July 2005.
Want a simple explanation for why this is happening? Mortgage rates under 4%.
‘The all-time home price highs nationwide and in many local markets are being enabled by historically low mortgage rates — which are falling once again this year,’ said Daren Blomquist, senior vice president at ATTOM Data Solutions.
About a third of the 130 metro areas analyzed for the report reached all-time home price peaks in June, a remarkable turnaround from the bottom of the housing crisis in 2012.
Read more: Tips for first-time homebuyers
Here’s a snapshot of what’s going on nationwide:
Where home prices are peaking
- Dallas – $240,156
- Atlanta – $192,000
- Seattle – $385,000
- Minneapolis – $235,950
- St. Louis – $190,209
Strongest year-over-year increase
- Salisbury, Maryland – Up 22%
- Pensacola, Florida – Up 21%
- Tampa, Florida – Up 20%
- St. Louis – Up 19%
- Boulder, Colorado – Up 19%
Home sales prices up at least 10%
- Orlando – Up 13%
- Phoenix – Up 12%
- Austin, Texas – Up 12%
- Portland, Oregon – Up 12%
- Denver – Up 11%
Where home prices are falling
- Bridgeport, Connecticut – Down 6%
- Allentown, Pennsylvania – Down 4%
- Columbus, Ohio – Down 3%
- Houston – Down 2%
- Milwaukee – Down 1%
What this means for home buyers and sellers
According to the study, home sellers in June sold for an average of $41,000 more than they purchased for, a 22% increase in price on average.
This is obviously exactly what you want to hear if you’re planning to sell your home soon.
However, the downside to this rapid appreciation is that first-time buyers are getting priced out of the market, especially in locations where jobs are plentiful.
Experts say that trend will only continue unless there’s a significant increase in homes listed for sale.