Housing Prices Continue To Soar Amid Supply Chain, Inventory Crisis

The United States is on track for the hottest housing market since 2006.

According to the National Association of Realtors, the median existing-home price in November was $353,900 — a 13.9% increase since November 2020. Year-over-year home prices have therefore risen for 117 straight months — the longest streak on record.

“Determined buyers were able to land housing before mortgage rates rise further in the coming months,” NAR chief economist Lawrence Yun explained. “Locking in a constant and firm mortgage payment motivated many consumers who grew weary of escalating rents over the last year. Mortgage rates are projected to jump in 2022, however, I don’t expect the imminent increase to be overly dramatic.”

“Supply-chain disruptions for building new homes and labor shortages have hindered bringing more inventory to the market,” Yun added. “Therefore, housing prices continue to march higher due to the near record-low supply levels.”