Housing Prices Hit New High
Home prices hit a new high last month, following a less-than-stellar spring sales season for houses (The Wall Street Journal, subscription).
What’s going on: “Home buyers were hesitant to jump into the market this spring, which is usually the busiest time of year for home purchases. Home sales in June fell to a nine-month low. Home prices at record highs, along with mortgage rates above 6.5%, have made home purchases unaffordable for many.”
By the numbers: Sales of existing homes fell 2.7% in June from May, to a seasonally adjusted annual rate of 3.93 million, the slowest pace since September, according to the National Association of Realtors.
- Economists polled by the Journal had forecasted a monthly decline of 0.7%.
- The national median price for previously owned homes increased in June to a non-inflation-adjusted $435,300, a record high in prices recorded since 1999 and a 2% rise from June 2024.
Why it’s happening: While housing prices are on the decline in some regions nationwide—particularly in Texas and Florida, where there has been growth in inventory—the supply of for-sale homes is below pre-pandemic levels, exerting upward pressure on prices.
- This is the third straight year of tepid home sales.
- “The fact that we hit record high home prices is reflecting multiple years of undersupply,” said NAR Chief Economist Lawrence Yun.
What it could mean: The slower spring season could extend into the summer and fall unless mortgage rates go down.