U.S. home prices continue to rise to new record highs in early 2021, with nearly every major urban area in America.
According to a report from the National Association of Realtors, 99% of urban areas saw prices rise in the first quarter of 2021 compared to the same period last year. Nationally, the average sales price of existing homes rose 16 percent from the first quarter of 2020 to $319,200, the highest since 1989.
“Significant price increases across the country simply reflect strong demand and a record low supply of homes. Record high home prices are seen in almost all markets, large and small, even in cities that in previous years were considered off the radar of many home seekers,” said Lawrence Yun, chief economist for the NAR.
The areas with the highest price increases are not necessarily the most expensive, but they are the areas where demand is driving home prices up more quickly. Also, selling larger, more expensive homes can lead to higher average prices, especially in smaller areas, NAR experts say.
Decatur, Illinois, was one of the places where prices rose the most, by 28 percent. The most expensive area in the country is still San Jose, California, with an average home sale price of $1.5 million.