U.S. house hunters are snapping up homes at record speeds, as the frenzied spring-summer sales season gets underway, according to data released Wednesday from Realtor.com.
The average home sold in only 55 days in May, as middle-income buyers vied for a limited pool of affordable properties.
The pace of the market is now at a historic high, said Javier Vivas, director of economic research for Realtor.com, which like Mansion Global, is also owned by News Corp.
“We’re in the thick of the hottest home-buying season of all time,” Mr. Vivas said.
Sellers are also asking for record amounts—the median listing price hit an all-time high of $297,000, according to the data, which did not break out the luxury market specifically.
The most expensive metro area in the country was Silicon Valley, spanning San Jose and Santa Clara, California. Listing prices there have risen 28% over the year to $1.28 million. In fact, California is home to the top six priciest markets in the U.S., including cities like San Francisco, Santa Cruz and Santa Barbara.
Meanwhile, many cities in the South and Middle America are seeing the most rapid price increases. The Indianapolis metro area saw median asking price rise 35% over the past year to hit a $283,350 and Midland, Texas, saw prices jump 31% to $367,275.
While May was frenzied, there are signs of a mild slowdown on the horizon, Mr. Vivas said.
Annual growth in asking prices slowed from 10% in February to 8% in May as a result of more inventory on the market compared to previous months.
That might offer a glimmer of hope to buyers discouraged by quick-rising prices and limited options.
“However, total listing volume remains highly dependent on new construction, much of which is still out of the price range of first-time buyers—the largest segment of buyers,” Mr. Vivas said.
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