Bargain hunters or those looking to break into the housing market may need to face the reality that finding a home for less than $250,000 is getting tougher and tougher. Homes priced under $100,000 plunged 20.7 percent in March month over month, and the percentage of homes under $250,000 has dropped 7.8 percent, according to the National Association of REALTORS®’ latest housing report.
The median home price was $250,400 in March, up 5.8 percent from a year ago.
“In general, we’re seeing that there aren’t enough homes available for sale across all price ranges,” says Danielle Hale, chief economist at realtor.com®. “But the biggest shortage is under $250,000.”
Buyers looking for affordability will find existing homes significantly less expensive than buying a new home. Existing-home sale prices are about 30.5 percent lower than newly constructed homes. The median price of a newly constructed home was $326,800 in February, according to the Commerce Department.
“The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels,” says Lawrence Yun, NAR’s chief economist. “Supply is woefully low, and home prices keep climbing above what some would-be buyers can afford.”
Source: “Spring 2018 Report: Even Fewer Affordable Existing Homes For Sale,” realtor.com® (April 23, 2018)