Home Prices Hit Record High in May at $419,300 Median

New York, NY, June 21, 2024-"Home prices rose in May to a new high, with low inventory continuing to spur bidding wars among home buyers in some markets,” according to the Wall Street Journal.

“The national median existing-home price rose 5.8% in May from a year earlier to $419,300, a record in data going back to 1999, the National Association of Realtors said Friday. Prices aren’t adjusted for inflation.

“Those high prices, paired with elevated mortgage rates, have limited the number of sales this spring - typically the busiest season for home buying.

“Sales of previously owned homes decreased 0.7% from the prior month to a seasonally adjusted annual rate of 4.11 million, the third straight monthly decline, NAR said. On an annual basis, existing-home sales, which make up most of the housing market, fell 2.8%.

“Even though demand is low, home prices are still rising because high mortgage rates are deterring potential sellers from listing their homes, keeping the supply of homes on the market lower than normal. Sales of high-priced homes are also rising faster than sales of mid-priced or affordable homes, pushing up the median price.

“‘Somewhat of a strange phenomenon, where we have low home-sales activity yet prices are hitting record highs,’ said Lawrence Yun, NAR’s chief economist. ‘Affordability is a challenge.’

“The decline in home sales was less than expected. Economists surveyed by The Wall Street Journal had estimated a drop of 1.4%.”