Housing market prices skyrocket to new highs

The median price of an existing home in May rose to nearly $350,000 for the first time on record, marking a nearly 24% increase from last year.
1:48 | 06/23/21

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Transcript for Housing market prices skyrocket to new highs
reporting from that region. The booming housing market. The latest numbers showing record-breaking home prices. Our chief business correspondent Rebecca Jarvis has more on what's behind it and what to know if you're thinking of buying. Good morning, Rebecca. Reporter: Good morning to you, robin. Yeah, we are just seeing the largest increase in prices on record. The median price of an existing home in may above $350,000 for the first time ever on record and prices are surging across the board up 24% from this time last year, prices have been surging since last summer and there are two primary reasons for that. First of all, supply. The supply of inventory of homes for sale is at rock bottom levels today. The demand is surging since the pandemic which some might call the great reassessment, people have raced out to buy homes that is particularly hurting people who are new buyers to the housing market and lower income where we're really seeing the impact is at the $100,000 to $250,000 of new homes for sale and that is happening across the country in the northeast, west and in the south, robin. What does this mean for prices going forward and for anyone who is in the market to buy a new home? Reporter: That is the $100 question, robin. It is still a seller's market and, frankly, economists believe it will remain that way for at least the rest of this year and going into next year. Buyers are still facing bidding wars in so many cases. The average home remains on the market for about 17 days, robin. If you're thinking of buying the most important thing is not to overextend yourself as we saw in the pandemic, anything can happen, robin. Good advice there as always. Rebecca, thank you.

This transcript has been automatically generated and may not be 100% accurate.

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