The typical American existing home sold for more than $400,000 for the first time, even as pending sales fell for the fourth straight week and economic uncertainty kept buyers on the sidelines.
In the real estate market, home sales prices have hit record highs, while buyers continue to withdraw from the market.
The median U.S. home sales price hit a record $400,894 in the four weeks ending June 7, marking the first time the typical existing U.S. home sold for more than $400,000, according to Redfin analysis.
The milestone comes as buyer demand continues to decline. Pending home sales fell 0.6% from the previous week, marking the fourth straight week of declines, as high home prices and economic uncertainty sidelined potential buyers.
Chen Zhao
Prices are rising as new supply remains constrained even as demand slows. As buyer activity cools, would-be sellers are holding off on buying, securing enough inventory to keep prices rising. The total number of homes for sale remained unchanged from the previous week, but the number of new listings increased by only 0.4%.
Monthly payments reflect pressure. With mortgage rates stuck in the mid-6% range, the typical monthly payment amounted to $2,619, just $8 below the 11-month high hit in late May.
“Crossing the $400,000 threshold is a reminder of how difficult it is for many Americans to break into homeownership,” said Chen Zhao, head of economic research at Redfin. “Price increases have lost momentum over the last month, and the high cost of buying a home is keeping many buyers out of the market, creating a historic buyer’s market in most parts of the country.”
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