Real Estate

Homes prices hit a new record and also saw the biggest ever 1-year price gain of 19%. But housing economists caution buyers not to make mistakes buying into the frenzy.

A record low supply of homes for sale and strong demand from buyers are sending home prices to record levels and frustrating homebuyers who keep getting outbid.

Sales of existing homes fell 6.6% in February from the month before. Meanwhile, prices are up 16% over the past year, giving homeowners about $2 trillion more in equity and widening the wealth gap.

It's not only low interest rates pushing up prices to record highs. A historic lack of homes for sale is a big part of it too. And it's making homeownership unaffordable for too many people.

The housing market is on a tear, setting all kinds of records, including prices. But it's also a reflection of the uneven economic recovery and more first-time homebuyers are getting priced out.

Developers are building thousands of single-family homes that won't require a mortgage to move in. Even people who could afford to buy are choosing to rent — they aren't ready for the long-term debt.

There are more than 150 abandoned homes in Watertown. A report put out by the city assessor finds homes in the city can be empty for months, even years,…

Michael Falcone is Chairman Emeritus of the Pioneer Companies, a commercial real estate development enterprise in Upstate New York, Denver, and Phoenix.…