For the Ninth Consecutive Week U.S. Median Home Prices Hit New All-Time Record High

Redfin reported on Thursday (7-11-24), that the median U.S. home-sale price hit an all-time high of $397,482 during the four-week period ending July 7, up 4.7% year over year, which represents the largest increase in over four months. It also marks the ninth consecutive week the median sale price has reached a new record high.

Redfin notes that U.S. sale prices have remained stubbornly high despite elevated mortgage rates pushing down homebuying demand; pending home sales are down 3.5% year-over-year and mortgage-purchase applications are down 13%. That’s partly because inventory remains historically low, pushing up prices and pushing down sales. And it’s partly because final sale prices are a lagging indicator—they reflect deals that were struck between buyers and sellers a month or two earlier.

However, Redfin says there are signs that price growth may lose momentum soon. The typical home is selling for 0.4% less than its asking price, marking the first time the typical home has sold under list price at the start of July since 2020, when the onset of the pandemic nearly ground the housing market to a halt. Additionally, just 32% of homes are selling above asking price, down from 36% a year ago and the lowest share at this time of year since 2020.

Finally, Redfin points out that although inventory is still historically low, it is rising on a year-over-year basis, which is another sign that price growth may lose steam in the coming months. New listings are up 7.3% year- over-year, and the total number of homes for sale is up 18.3%, with most homes for sale growing stale: More than 60% of homes are listed for at least a month without going under contract. More homes are hitting the market partly because mortgage rates have been sitting at double pandemic-era lows for nearly two years, and sellers are tired of waiting for rates to drop before they move on to their next home.