The price of a home in America is soaring.
According to a recent report by real estate analytics company Zillow, the median price of the median-priced home in the U.S. in 2022 was $1.5 million.
The median price for a home that sold for more than $1 million was $2.6 million, and the median sale price was $4.2 million.
In other words, median home sales in the United States jumped by over 1.5 percent in 2022.
While these numbers may sound scary, the average home sale price in 2022 is a little more than half the price of what it was in 2007.
And as Zillows data shows, home sales are on the rise, particularly in areas like the East Coast.
The most expensive home sale in the country last year was in Atlanta, Georgia.
A single-family home sold for $3.9 million, while the median asking price was a whopping $3 million.
ZillOW also found that median sales prices in New York and Los Angeles had double-digit increases.
These figures are troubling for many Americans, but they don’t come as a surprise to some homeowners.
In fact, Zilloviz says, the market is already saturated and homeowners are struggling to find buyers who are willing to pay a premium.
“The reason that people are selling now is because there is not enough inventory in the market,” says Zillowitz.
“When you have a shortage of inventory, it puts pressure on prices, and that pressure is putting more pressure on sales,” she says.
Zillow data showed that the median selling price for homes sold in the Northeast, Midwest, and South was $3,500, while homes sold on the West Coast were $4,000.
And those price tags have been trending higher in recent years.
In New York City, for example, the mean home sale prices were $3 and $4 million, respectively.
In the same areas of the country, the same people were able to buy homes for $2,700 and $2 million, Zilow found.
In fact, the only areas of New York that were selling more homes than the rest of the state were in areas that were in the middle of a massive foreclosure crisis.
In all, New York accounted for almost three-quarters of all sales last year, with just two areas accounting for more sales than all the rest.
Zilow predicts that the real estate market in America will continue to see significant price increases, especially in the East and West Coast.
“In the East, we are seeing a lot of buyers who have been selling for a while and have found a new home,” says Mike Shrader, president of Zillower.
“And in the West, there’s a lot more people that are looking for a return to affordability.”