The median home-sale price hit a record $400,894 during the four weeks ending June 7, up 1.5 percent year-over-year, according to a new report from Redfin.
That marks the first time the typical American existing home has sold for over $400,000, according to a Redfin analysis of MLS data.
Monthly payments are historically high, too. The typical monthly payment was $2,619, just $8 shy of late May’s 11-month high. Stubbornly high home prices, combined with mortgage rates in the mid-6 percent range, are propping up monthly housing payments.
High housing costs are pushing many would-be homebuyers to the sidelines, according to Redfin. Pending home sales fell 0.6 percent from a week earlier, the fourth straight week of declines. Widespread economic uncertainty is also driving prospective buyers away; many Americans are jittery about the Iran war, inflation and the possibility of a Fed rate hike, among other financial ups and downs.
Another trend that Redfin noted is that home prices are rising despite slow homebuying demand. Even though there are more sellers than buyers in the market, new supply is tight enough that prices are staying propped up as some would-be sellers opt to keep their homes off the market as demand slows. The total number of homes for sale was essentially flat week-over-week, while new listings rose 0.4 percent.
Another reason Redfin says prices keep rising is that today’s sale prices stem from deals that were negotiated in April and early May when mortgage rates were lower and demand was a bit stronger.
“Crossing the $400,000 threshold is a reminder of how difficult it is to break into homeownership for many Americans — and rising prices of other things is making it even harder,” Chen Zhao, Redfin’s head of economics research, said in a release. “There are a few bright spots, though. Price growth has lost some steam over the last month, and prices aren’t rising nearly as fast as they were last year. And the high costs of purchasing a home are keeping many buyers out of the market, which has led to a historic buyer’s market in most of the country. So even though prices are high, in many markets — especially places like Nashville and Austin, which were once red-hot — the door is open for buyers to negotiate with sellers, ask for concessions and get the terms they want.”