US home prices hit record high even as sales fall
The median price of an existing U.S. home rose to an all-time high in June, even as sales fell, underscoring that homebuyers remain squeezed by high prices, high mortgage rates and limited housing supply.
The median existing single-family home price climbed 1.8% from a year earlier to $440,600, the highest price on record, the National Association of Realtors (NAR) said Thursday. It was the 36th straight month of annual price increases.
Meanwhile, U.S. home sales dropped 2.4% from May to June, while rising from a year earlier.
“The median home price has reached an all-time high,” NAR’s chief economist, Lawrence Yun, said in a press release. “Even so, affordability is better than a year ago because wage growth is outpacing home price growth.”
Yun added that monthly sales activity has been driven by fluctuations in mortgage rates and “shows how sensitive homebuyers are to affordability conditions.”
The average rate on a 30-year fixed mortgage was 6.49% in June, up from 6.44% in May, according to Freddie Mac data cited by NAR.
Housing bill aims to increase supply
Thursday’s report came a day before Friday’s deadline for President Donald Trump to sign or veto the bipartisan 21st Century ROAD to Housing Act. If Trump takes no action, the bill becomes law without his signature, provided Congress remains in session.
The legislation includes sweeping reforms aimed at increasing the nation’s housing supply and making homeownership more affordable. It passed both the Senate and House with overwhelming bipartisan support last month.
Trump abruptly canceled a signing ceremony for the bill, tying his support to congressional action on an unrelated election measure. Trump later described the housing bill as “a yawn” and “so unimportant.”
On Tuesday, Yun warned that housing will become more unaffordable if new homes are not built.
“Without consistent gains in inventory, home prices can accelerate,” he said. “It is critical to introduce more supply to the market to widen the opportunity for homeownership.”
Round out your reading
- Scientists are now eyeing a possible ‘Mega El Niño’.
- Critics mocked Mamdani’s AC request. Republicans made the same ask.
- Social Security was supposed to be a safety net. To young Americans, it’s a broken promise.
- What happens when the water dries up? Much of the American West is close to finding out.
- Political insiders are targeting the two-party system’s grip on America.
Ella Rae Greene, Editor In Chief
