According to the National Association of Realtors' Q1 2018 report, housing inventory is near record lows, pushing median home prices up. Existing single-family home prices rose 5.7 percent YOY.
Existing home prices were up in 91 percent of the markets the NAR measured, meaning that this is no isolated, regional trend. As for inventory, it's down 7.1 percent nationally YOY, per HousingWire. NAR Chief Economist Lawrence Yun says, “Realtors in areas with strong job markets report that consumer frustration is rising," adding, "Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.”
“Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018,” Yun said. “Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year’s tax cuts. It’s simple: home builders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability,” he said.