As the summer home-buying season gets underway, median home prices are surging. The culprit for the increasing prices: a lack of homes for sale and a rush of buyers. The number of listings is shrinking at a faster pace, and it’s causing prices to go up.
Meanwhile, buyers who still have jobs have been descending on the market, enticed by record-low mortgage interest rates. The market typically begins warming up in the spring and then reaches a fever pitch by the summer. Families often prefer to move in the summer when the kids are on break from school. That means buyers seeking an affordably priced home this summer should expect multiple officers and bidding wars, which drive prices up even further, instead of deals. The summer housing market will be better than expected, but far off the normal pace.