US Home Prices Hit Record High
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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House prices in the United States have hit a record high, according to real estate company Redfin.
Why It Matters
Home prices skyrocketed across the country during the COVID-19 pandemic, when relatively low mortgage rates and the rise of remote work spurred a surge in demand. While the pace of their growth has since slowed, home prices remain historically high and are still rising at the national level.
New homes are shown Wednesday, May 27, 2009, in Happy Valley, Ore.
New homes are shown Wednesday, May 27, 2009, in Happy Valley, Ore.
Rick Bowmer/AP
What To Know
The median U.S. home-sale price reached a new record of $396,500 during the four weeks ending June 15, according to a report from real estate brokerage Redfin. This is a 1 percent increase compared to the same time last year, even though overall activity in the housing market remains low.
Although prices are at an all-time high, they are rising much more slowly than earlier this year, when yearly growth was about 5 percent. The current 1 percent increase shows the pace of price growth is cooling down, reflecting ongoing problems between how many homes are available and how many people want to buy.
Home-sale prices usually peak in June or July, but this year's market is much less competitive than in recent years, Redfin says.
At the same time, buyers are gaining more power to negotiate, despite still facing high prices. The median sale price is now about $26,000, or 6 percent, less than the median asking price of $422,238. This is a big change from 2021 and 2022, when bidding wars pushed sale prices well above asking prices. Redfin says this shift is because there are more sellers than buyers right now.
The total number of homes for sale has increased 14.5 percent from a year ago, and new listings are up 4.4 percent. However, demand is falling: pending sales are down 1.5 percent compared to last year, and mortgage-purchase applications dropped 3 percent just last week.
Meanwhile, the median monthly housing payment is close to record levels, only $53 less than its highest ever, showing that many buyers still face big challenges affording a home.
What People Are Saying
Kelly Connally, a Redfin Premier agent, said: "I'm explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate.
"Pricing is most important, but with fewer buyers than usual out there, sellers should also make sure their home is in excellent condition and be ready to make repairs upon inspection. There are a few exceptions: Homes in desirable locations that are in perfect condition are still hot and typically sell at or above asking price."
What Happens Next
With soft demand and rising inventory, Redfin forecasts that home-sale prices could begin to decline nationally before the end of the year.
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