Record US Existing-Home Prices Weigh on Pending Sales

The median US existing-home sale price reached a record $400,894 during the four-week period ending June 7, up 1.5% year-over-year, Redfin reported.

The reading marked the first time the typical US existing home sold for more than $400,000, according to Redfin. The typical monthly mortgage payment was $2,619, just $8 below late May’s 11-month high, as home prices remained elevated and mortgage rates stayed in the mid-6% range.

Pending home sales fell 0.6% from the previous week, marking the fourth consecutive weekly decline. Redfin said high housing costs and broader economic uncertainty are keeping many prospective buyers on the sidelines.

Home prices continued to rise despite soft homebuying demand. Redfin said new supply remains tight enough to support prices, even with more sellers than buyers in the market. Total active listings were essentially flat week-over-week, while new listings rose 0.4%.

Redfin Head of Economic Research Chen Zhao said:

“Crossing the $400,000 threshold is a reminder of how difficult it is to break into homeownership for many Americans—and rising prices of other things is making it even harder. There are a few bright spots, though. Price growth has lost some steam over the last month, and prices aren’t rising nearly as fast as they were last year. And the high costs of purchasing a home are keeping many buyers out of the market, which has led to a historic buyer’s market in most of the country. So even though prices are high, in many markets—especially places like Nashville and Austin, which were once red hot—the door is open for buyers to negotiate with sellers, ask for concessions, and get the terms they want.”