- The national median home price has been spiking amid the pandemic, as people scramble to take advantage of surprisingly low mortgage rates.
- Because housing inventory has hit a record low, even moderate demand from home-buyers has pushed prices up.
- The August edition of the S&P CoreLogic Case-Shiller national home price index was released on Tuesday, showing home prices rising at the fastest pace in more than two years.
- The index, which tracks home price fluctuation in the 20 largest US cities, found that August home prices were 4.1% higher than in July, and 5.2% higher than the previous August.
- Phoenix, Seattle, and San Diego reported the highest year-over-year gains, but all 20 cities included in the index reported higher home prices in August than in July.
- Separately, the National Association of Realtors found August's national median home price of $310,600 not only stayed above the $300,000 threshold, but marked the 102nd straight month of year-over-year gains.
- Median home prices of single-family homes and condos are currently less affordable for the typical American than historical averages in roughly two-thirds of the country, according to Attom Data Solutions' third-quarter report.
- Some experts say they think home prices will continue to balloon until more homes hit the market.
- "These increases are unsustainable, but prices will keep rising in the double digits for for another six months to a year," Ed Pinto, the director of the American Enterprise Institute Housing Center, recently told Fortune. "Price increases will keep racing until more inventory comes on," he said, adding that will happen slowly.
- Other industry analysts say home-price increases could slow as the coronavirus pandemic dampens employment, spending, and disposable income.
- "We expect some moderation in home price growth in the fourth quarter as the pace of home sales cools in the face of a resurging pandemic and a faltering recovery," Nancy Vanden Houten, an economist at Oxford Economics, told MarketWatch.
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