US Median Existing-Home Sales Price Up 5.2% Year-Over-Year in April; Hits Record High

On Thursday, Redfin reported that in the four-week period ending Sunday, April 21st, the median US existing-home sales price hit a record $383,725. That’s up 5.2% from a year earlier and one of the largest price jumps since October 2022.

According to Redfin, the average weekly mortgage rate hit 7.1% this week—its highest level since November 2023, as it became clear that the Fed would keep interest rates high longer than expected. High prices and mortgage rates drove the median monthly housing payment to a record $2,843, up 13% from a year ago.

Redfin notes that prices are climbing despite the fact that there’s more inventory than last year. New listings are up 10.2% year-over-year, though growth in listings may be losing momentum as stubbornly high rates solidify the lock-in effect. Prices are being buoyed by the fact that inventory remains low despite the recent improvement.

Demand is holding up fairly well in the face of 7%-plus rates, though some indicators are starting to show a slowdown. Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is near its highest level in about eight months, but mortgage-purchase applications are down slightly (-1%) week-over-week.

Commenting on the report, Redfin Economic Research Lead Chen Zhao said:

“My advice to sellers is to price your home fairly. Even though sellers are getting top dollar at the moment, they should price competitively to attract buyers from the start and avoid having to drop their price as stubbornly high mortgage rates eat into buying budgets. My advice for serious buyers who can afford today’s costs is to shop for your dream home and accept that this year is probably not the time to find a dream deal. Price growth may cool slightly in the coming months if mortgage rates stay high or rates might fall slightly—but overall housing costs are likely to remain elevated for the foreseeable future.”