U.S. Home Prices Hit Record High of 13% Annually

According to a new report by Redfin, U.S. median home sale prices increased 13% from August 2019 to $319,178--the highest on record. This 13% year-over-year increase was the largest since October 2013. However, home price growth this high is making the housing market especially difficult for first-time homebuyers right now. Rising prices are just one more reason for people to leave expensive urban neighborhoods behind. The sudden rise of remote work has allowed homebuyers who are priced out of one neighborhood to expand their search to more affordable areas. In turn, they are pushing up home prices in those relatively affordable areas, causing more people to look to even more affordable areas, and so on. Price growth may slow in 2021, but even if it does, high prices are going to continue to make affordability a concern for buyers.