Median list price for a house reaches record $300,000

[Yo_Mama_Been_Loggin]

If you're selling a high-end home, you've got company. More pricey houses are up for sale this year, pushing listing prices to record highs.

The median asking price for a U.S. home hit $300,000 for the first time ever in March, according to housing data from Realtor.com to be released later Thursday and provided early to USA TODAY. That topped the previous peak of $299,000 reached in June and July of last year.

Still, there are signs that things are slowing for sellers. Year over year, the median list price increased 7% in March, slightly lower than the growth rate of 8% from the same month in 2018.

“In spite of the fact that some markets are slowing, we are hitting that level in March, which tends to not be the highest price during the year,” says Danielle Hale, chief economist at Realtor.com. “This suggests that we’ll see prices go above $300,000 this year.”

Why are sellers asking for more?

The reason for the jump in list price isn’t necessarily that sellers are overly optimistic. Instead, higher-priced homes tend to come onto the market in spring, pushing up the overall median, and this year, more of these pricier homes are hitting the sales block.

The number of houses priced above $750,000 jumped 11% from last year, while the supply of entry-level homes sunk by 9%.

https://www.msn.com/en-us/money/realestate/median-list-price-for-a-house-reaches-record-dollar300000/ar-BBVBVPB?li=BBnbfcN

In other words they're just not building entry level housing thereby skewing the median.

[llmart]

1. I will never understand why most of the new homes being built are monstrosities.

Did no one learn a lesson from the last housing crash which was fairly recent in history. In my area, that's all I ever see going up except for new condo complexes which are almost always what are referred to as raised ranches. What don't they understand about the aging population of the country? What don't they understand about the smaller families of younger people? What don't they understand about the fact that most people with elderly parents do NOT take their parents into their homes when they can no longer live alone? All of these factors would make one think that it would be a good idea to build those condo complexes as one story, either free standing or duplex units. I briefly rented one of those raised ranch condos and I had seven steps up to the front door and then another 15 stairs up to the actual living area of the condo. Really wasn't a problem for me at the time even though I was in my 60's, but I certainly wouldn't have bought one at that age. Why do people with one or two kids need a 3,000 sq. ft. or more house?

My other question would be, or maybe it's just a statement, that township ordinances often have limits as to how small a builder can build a house in that community. I love small houses. I would love to buy some acreage and have maybe a 1200 sq. ft. house on it, but my township prohibits it. How stupid is that?

[spooky3]

5. The problem is that land in some places is costly, and that there are a lot of costs that are fixed

so they are the same for the builder whether a small or a large house is built. Other costs aren't exactly the same but do not differ enough to justify the smaller house (e.g., building a 15X15 room vs. 12X12), because people would rather pay a little more to get more space, if they can. In many cases, the builder would lose money on a small single family home.

[llmart]

7. Doesn't matter as long as I'm the one paying for it.

And if I'm the customer and I want a small house built on a parcel of land and they quote me "X" number of dollars to do that, then I would pay it.

I'm smart enough to know that even if you get a bigger house for the same money, your maintenance costs, taxes, repairs, utilities to heat/cool, etc. etc. are going to be much more over the long haul.

People managed for decades to live in smaller homes or build smaller homes. I just happen to be a person who is concerned with the ecological footprint of a big house - all aspects of that footprint, not just the size of it. I grew up in a time when a three-bedroom ranch house was generally 1400-1500 square feet and the average number of children was four per couple. My parents had seven children in a small house.

[spooky3]

8. But that doesn't answer the question you raised. You have to look at it from the builder's

standpoint. If they can't make money producing houses like the one you described, they will not build them. People who want to own small houses may have to buy condos or townhouses.

[llmart]

9. I think my original point was that more and more people are downsizing.

I'm looking at it from the standpoint of a baby boomer which most of my acquaintances, siblings, friends and neighbors are. I cannot begin to tell you how many of them are thinking and planning to downsize, being forced to downsize due to less income in their retirement years or physical limitations or both, or empty nesters or newly single. We are a very large proportion of the population and each year more and more of us are retiring. In our discussions about downsizing and moving to something smaller, most of us agree that we prefer something that's one-story but that's not the type of condos they are building.

In my area the condos they are building are townhomes or these raised ranches and many people think they are impractical for seniors which they are. I get into these discussions because the people who know me know that I live in a detached, one-story condo and I am constantly told how lucky I was to find one. I live in a town next to a very desirable small city and they have only one or two condo complexes that are one-story. In my complex our condo board has a lengthy list of people who have contacted them to ask if they could call them if a one-story condo comes on the market. Now, that's great for me of course because I can sell my place overnight if I decide to. It's now worth almost twice what I paid for it 6 years ago. However, until it's assisted living time or I meet my maker I'm not leaving here. I just think builders and zoning boards/planning commissions are not thinking long term.

There's a reason that there is such a thing as the tiny house movement in this country. Even some younger people don't want to be saddled with a huge house. I'm not advocating a 300 square foot house for most people, but these 3,000 square foot houses are ridiculous unless you have eight kids.

[Mariana]

2. Around here, the builders put up either huge McMansions or condos.

Small detached homes on 1/4-1/2 acre lots, like mine built in 1959, aren't going up anywhere.

[TruckFump]

3. I live in Seniors Mobile Home Park -- LA County (Calif)

The mobile (actually manufactured) homes in here go for that much and more. In LA County -- urban LA sprawl, beach area -- there is NOTHING in the regular housing market (houses, condos, town houses) that is as low as $300K. Lots often cost more than that, much more!

Disgusting...

[nolabear]

4. Are you in Seattle? I am. YOWTCH!

We've lived here for thirty plus years so have ridden the insane market just fine but my son and daughter in law are going insane trying to find a house in an outlying area that they can afford. And they can afford more than that $300,000. But they have to sell their place so it's contingent, and the competition at that pitiful 3-400,000 level is so intense they get passed over for cash offers, no contingent sales, crazy up-bids, etc.

We rented and later sold a townhouse in the city a couple of years ago and it was insane. We got calls from all over the world and far too many speculators than I was thrilled with. We finally sold to a sweet couple with a baby. But we got a ridiculous price too. It's nuts.

[snort]

6. PDX here.

The house we bought in 2014 would be out of our reach at this point. We're lucky we were able to buy when we did. Since Oct. 2014 our property has gained over 170K in market value. Great for us, not so good for the average buyer. With dumpster fire at the helm, I suspect some serious market corrections may be just around the corner. Hang tight kiddies!