The real estate market is hitting a record high in home sale prices, while buyers continue to pull back.
The median U.S. home-sale price hit a record $400,894 during the four weeks ending June 7, the first time the typical American existing home has sold for more than $400,000, according to a Redfin analysis.
The milestone comes as buyer demand continues to retreat. Pending home sales fell 0.6 percent from a week earlier, the fourth straight week of declines, as high housing costs and economic uncertainty push would-be buyers to the sidelines.
Chen Zhao
Prices are rising despite slowing demand because new supply remains constrained. Would-be sellers are holding back as buyer activity cools, keeping inventory tight enough to sustain price growth. The total number of homes for sale was flat week over week, while new listings rose just 0.4 percent.
Monthly payments reflect the pressure. The typical monthly payment reached $2,619 — just $8 below an 11-month high set in late May — as mortgage rates held in the mid-6 percent range.
“Crossing the $400,000 threshold is a reminder of how difficult it is to break into homeownership for many Americans,” said Chen Zhao, Redfin’s head of economics research. “Price growth has lost some steam over the last month … 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.”
