Hey welcome back in today's video we're Going to talk about why are home prices Still increasing when we have all-time Record low for housing affordability and Also we have rates or average rates over 7% as well uh let's discuss so again This is from uh the mortgage news daily As of today which is on Monday April 29th the average 30-year fix rate it's At 7.43% as an increase of 84 basis points Compared to one year ago and here's a One-year chart looking at rates they Have been at or above 6.5% for about 12 Months now but despite that um redin Reported last week I made a video about This it says buying a home cost more Than ever with prices hitting an All-time record high that's looking at Existing houses also on Monday which is Today alus research.com also reported That the national meeting home sold Price Also reached a new all-time record high At 398,000 as a 2.4% increase from last Week and that surpasses the previous Peak that was set back in 2022 uh back then we're at 395,000 so What the heck is going on I'm going to Share some um Trends we're seeing right Now at the national level but also Provide some context regarding the California housing market as well as
Florida to get some insights regarding Um why are home prices or I should say The med and so price why are we at All-time record highs so here's a Slideshow I pulled from the National Association rers website just looking at Sales so sales right now the seasonly Adjusted analized rate is at 4,1 190,000 that's the most most recent Trends we have uh for the month of March This year this is lower than last year But also way lower compared to the Craziness we saw in 20 21 as well as 2022 uh looking at prices the med so Price according to Nar is at $393,500 uh for all housing Types on a National level that's increase of about 5% on a year- Vie basis uh and also We're only down by about $20,000 from uh June 2022 Peak at $413,500 one thing that's important to Know here is that this is based on home Prices for March but redins as well as Alos research.com data um covers the Majority of um April so for example um According to redin they looked at the Four weeks ended April 21st whereas Nar Only was only looking at March's data Also check this out here's a percent of Sales for the month of March according To Nar by price range so only 7% of all All home sales in March on a national Level were for over $1 million and about 45% were in the range of $250,000 to
$500 $500,000 so it makes sense that the Uh us Med and so price at $393,000 it makes sense the vast Majority is in this uh price segment Here but here is where it gets really Really really interesting here's a Percent change in home sales by price Range so what you guys see here so Sal Sal for over 750,000 row so in the range Of $750 to $1 million that increased by Um 5% whereas home sales for over $1 Million surg by 14% all other these price segments so Decrease so for example 500,000 to 750,000 that fell by 1.2% so for example in the range of 500 To 750,000 that decreased by 1.2% and of course big decreases for These other more affordable uh price Segments so potentially what we're Seeing here is because we're seeing more Houses being listed for sale that far Exceeds the US median so price that Could be inflating overall the numbers On a national level more luxury home Sales on a national level the national Associat rers also provided this as well Uh this is looking at um the percent of Change in home sales from one year ago Uh this covers existing houses for for The month of March again we're looking At the med so price 394,000 but increase of 5% in the range Of 750 to 1 million and and like I
Mentioned a huge gain of $1 million home Sales all their price segments have been Decreasing year-over-year so that's Overall for the us but also for each of These four major regions we're seeing Similar scenarios right Northeast $1 Million home sales surging by nearly 18% The Midwest increasing by 7.5% which is right there the South Rising by 15.3% and the West saw a gain of 13.11% in contrast for home sales for Less than 250,000 all these uh major regions Posted a decrease by more than 10% also In the range of 250 to 500,000 the only Increase was actually in the midwest Rising by only 1.8% whereas the Northeast the South and The West all decreased what also could Be infl the um overall Medan St price is Also the gains in the range of $750 to $1 million the biggest increase is Actually in the north uh Northeast Rising by 10.5% overall though it is important to Note that the vast majority of all home Sales in March uh were in the more Affordable range though 250 to 500,000 That was at 45% uh that was followed Closely by in the range of 100 to 250,000 and also 500 to 750,000 but again when when talking Talking about the increase in home
Prices up by about 5% year-over-year uh We really have to look at the increase Uh for these Upper price segments let's Also have a look at data from uh the California Association Realtors then We'll look at Florida as well looking at The mix and home sales to see where um Where we can of figure this all out the California median sale price uh is at Nearly 855,000 quite a bit higher Compared to the national average that's An increase of 7.7% compared to March of 2023 uh here's a percent change in home Sales by price range and just like the National Association roles reported We're seeing big gains in the upper Range so in the range of 1 million to About2 million uh that increased by 6% From 12 months ago and houses that sold For over $2 million this March a giant Increase of 20% whereas home sales for Less than $1 million All decrease for these price segments in Regards to the share of prices or the Share of um of sales by Price segment uh The for the houses that sold for over $1 Million um one year ago 28% of all home Sales in the month of March last year Sold for over $1 million this year that Share is at 34% and again that is significant given The fact that overall in California We're at 855,000
So we're seeing a higher share of $1 Million plus houses that are selling and The California associat rors also um Noted this as well the mix of sales Continues to support the meeting price Growth so look at uh what happened um Prior to the pandemic back in May of 2019 let's look at this blue line first These are houses that sold um for less Than $500,000 and the share there was around4 % so back then around 45% of all home Sales in California sold for less than $500,000 in contrast houses that sold For over $1 million was only 20% of all Home sales now fast forward to March 33.7% of all houses in California that Sold sold for over $1 million and now we Only have 25% selling for less than $500,000 so the mix in sales is helping Increase of the meian home sold price um Also looking ahead in California we also Are seeing a big increase of pending Home sales for over $750,000 as well so for houses that are Selling or are in contract for over $2 Million that increased by approximately 40% from 12 months ago the Blue Line the Saw blue line um are pending home sales In the range of1 million to $2 million That increase by about 25% or so and Houses that are uh in pending home Salale status for 750 to 999,000 that increased by about 20% but
All other price segments are recording Increases on a year-year basis but not As high compared to this upper range Actually correction there uh in the Range of 300 to 399,000 uh paining home sales did Decrease but overall for all these other Price segments um they're not incre in As much in the upper range of the market So looking ahead into um April and May We could see uh the mix and sales Influence um home prices overall we We'll have to look at that um also it's Helping as well in California and also Nationwide as well is due to the fact We're not seeing inventory absolutely Skyrocketing and we're still way below Pre pandemic levels here's a look at Active listings this year compared to The years past Going back to 2018 so even though um Active listing inventory is up by about 25% this March compared in March of 2022 We're still way below uh the levels we Had back in 2020 uh 19 as well as 2018 So for example back in 2018 we had Around 45,000 houses for sale now we have Around 25,000 on top of that we're not Seeing this giant run up in uh inventory Like we saw in the spring home bind Season in 2022 so uh even though we're up on a Year- your basis it's not skyrocketing
Uh as of yet um this year compared to The um huge gains we saw in the early Part of 2022 so overall uh limited Inventory historically speaking is also Um uh keeping um home prices supported As well in addition let's have a look at What's happening in Florida and they Provided um a more depth analysis Regarding uh close home sales and Inventory numbers uh by price range so In the range of 50,000 to about $400,000 uh they saw a decrease by Double digits from one year ago and this By the way is for single family houses In Florida from the Florida realtors Association so home sales uh in the Range of um $50,000 to $400,000 Decreasing by double digits Year-over-year in Contra For home sales that sold this March for Over $1 million it increased by 99.1% what's remarkable about this is That in Florida um for the month of March the meeting home sld price is at 421,000 so if we saw a 99.1% increase of $1 million plus home sales that um could Likely impact um overall prices in this March so that was a look at close home Sales let's have a look at the number of New listings by price range so in the Range of $600,000 to nearly $1 million a Big increase of 14.8% compared to March of 2023 for new listings priced for over $1
Million giant increase of 15.8% which is pretty crazy because That's the biggest year-year increase For all these price segments so for Example in the range of 150,000 to 200,000 that fell by 19.2% so again we're seeing a big uh Increase of closed home sales in the Upper range but also new listings also Increasing the most in the upper range As well in regards to active inventory Or the mountain houses for sale by price Range here's a look at that as well so The vast majority of inventory in Florida at least for the month of March This year is in the range of $400,000 to $600,000 That's an increase of 43.4% year-over-year But in the range of 600,000 to nearly $1 Million that saw the biggest year- ofe Increase up by 49.0% so not only are we seeing more new Linges hit the market that are in the Upper range but overall when looking at The amount of single F houses for sale In Florida we're seeing big increases in The upper range as well what's also Helping um support home prices in Florida is a lack of distress home sales Which of course is foreclosures and Short sales so for the month of March There was a over 23,000 regular home sales only 159
Foreclosures and 27 short sales so Therefore the vast majority or about 99% Of all home sales this March were for a Traditional home sale and less than 1% Wored to stress home sale this is a Common phenomenon we're seeing right now On a national level as well uh this is a A chart I pulled from um att's or Adams Um latest report regarding forclosures And of course I made a video about that As well um so if you guys want to take a Look at that I posted a couple days ago But here's a number or a look at the Number of completed foreclosures or Aro Properties these are uh properties in Which the lender foreclosed on the Homeowner and they um uh did not sell um That house at the courthouse steps Through an auction uh instead they Became a real estate owned property and Were sold um as an REO so any case Looking at U the number of foreclosures Overall right now I mean it's been Non-existent for about um four years Right now and even though we have uh the Moratoriums um more or less being Expired except for VA buyers I believe Uh we still have very very low levels of Completed foreclosures um especially When you compare to uh 2010 when we had Around uh 275,000 or actually just under 300,000 Foreclosures and right now we have 10,000 all right changing gears again
Let's talk about um application numbers As well a future indication of home Buying demand and also home prices in The coming months so here's the um the Amount of purchase application growth by Priced here this is year-to date 2024 uh compared to year-to date 2023 This time so for um home sales um for or Home home prices over $1 million that Surg by 63.7% for applications for Home Loans to Buy houses in the range of 900,000 to $1 Million giant increase about 47.6% in the range of 800 to 900,000 a Big increase of 22.3% going through this list here Though um for um home prices less than $700,000 only an increase of less than 10% so for example home loans for houses Um under the national median home sale Price only an increase of 3% also a Small gain of 1.9% in the range of $200,000 to $300,000 so please comment below with Your biggest takeaways from today's Video mine really is that um The Mixing Sales on a national level also we're Seeing in Cali californ and Florida um Is likely impacting overall the Medan Home sold price if you guys want to get A gauge about what's happening in your Neck of the woods you really need to Drill down to um neighborhood specific Data in order to do that you can go to
Um Zillow reals raom red finin for Example it's a little bit tricky looking At the data but um if I was in your Shoes looking to buy a house if you want To see what's happening your neck of the Woods I would look at or actually would Contact a local R agent to um provide MLS data looking at overall stats uh but Certainly I would say overall just Looking at the big picture here the mix And sales is likely impacting uh the Overall median home sale price but also Inventory and other factors are coming At to play as well but what's your Biggest takeaway from today's video why Do you guys think that we have all-time Record highs for home sold prices on a National level please leave me a comment Below I appreciate you guys watching Today's video please like And subscribe And we'll see you in the next video [Music] [Music]
