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US home prices reach unprecedented territory as sales slow
AP News • • general
Key Points:
- Existing U.S. home sales declined 2.4% in June to a seasonally adjusted annual rate of 4.09 million units, below economists' expectations, though sales rose 2.8% compared to June last year.
- The median sales price for U.S. homes reached an all-time high of $440,600 in June, marking 36 consecutive months of annual price increases and exacerbating affordability challenges.
- First-time homebuyers made up 33% of purchases in June, down from 35% in May and below the historical average of 40%, reflecting ongoing barriers to entry in the housing market.
- Mortgage rates have increased due to geopolitical tensions and inflation concerns, contributing to sluggish home sales, although rates remain lower than a year ago; meanwhile, median list prices fell 2.5% year-over-year, with regional variations in pricing trends.
- Housing inventory remains tight with 1.56 million unsold homes, translating to a 4.6-month supply, below the balanced market threshold, and experts emphasize the need for a 30-40% increase in inventory to improve affordability.
