June Home Prices Hit Record High at $426,900 Median

Washington, DC, July 23, 2024-"Home prices hit a new high in June for the second straight month, the latest sign that the housing market is unaffordable to millions of Americans,” reports the Wall Street Journal.

“The spring home-buying season, usually the busiest time of year for the housing market, has been a dud this year. Home sales declined in June for the fourth straight time on a monthly basis. The combination of high prices and elevated mortgage rates has made homeownership less attractive to renters and deterred current homeowners from moving.

“But low inventory of homes for sale in much of the country is pushing prices higher. The national median existing-home price in June rose to $426,900, a record in data going back to 1999 and a 4.1% increase from a year earlier, the National Association of Realtors said Tuesday. Prices aren’t adjusted for inflation.

“While the number of homes on the market has risen in recent months, it is still well below historical norms, which can lead to bidding wars for desirable properties. More than one-third of homes sold in June sold for more than their list price, according to real-estate brokerage Redfin. Sales of luxury homes rose in June compared to a year earlier, while sales of cheaper homes declined, which also pushed up the median price.

“Sales of previously owned homes in June fell 5.4% from the prior month to a seasonally adjusted annual rate of 3.89 million, NAR said. On an annual basis, existing-home sales, which make up most of the housing market, also fell 5.4%. 

“‘We are seeing more inventory, but we are not seeing increased sales,’ said Lawrence Yun, NAR’s chief economist. ‘We may be moving away from a sellers’ market towards balance, and maybe entering a buyers’ market.’”