\nRedfin reports high housing costs and economic instability are driving would-be buyers away<\/i><\/p>
SEATTLE--(BUSINESS WIRE)--The median U.S. home-sale price hit a record $400,894 during the four weeks ending June 7, up 1.5% year over year. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p> \nThat marks the first time the typical American existing home has sold for over $400,000, according to a Redfin analysis of MLS data.<\/p> \nMonthly payments are historically high, too. The typical monthly payment was $2,619, just $8 shy of late May\u2019s 11-month high. Stubbornly high home prices, combined with mortgage rates in the mid-6% range, are propping up monthly housing payments.<\/p> \nHigh housing costs are pushing many would-be homebuyers to the sidelines. <\/b>Pending home sales fell 0.6% from a week earlier, the fourth straight week of declines. Widespread economic uncertainty is also driving prospective buyers away; many Americans are jittery about the Iran war<\/a>, inflation and the possibility of a Fed rate hike<\/a>, among other financial ups and downs.<\/p> \nHome prices are rising despite slow homebuying demand. <\/b>Even though there are more sellers than buyers in the market, new supply is tight enough that prices are staying propped up as some would-be sellers opt to keep their homes off the market as demand slows. The total number of homes for sale was essentially flat week over week, while new listings rose 0.4%. Another reason prices keep rising is that today\u2019s sale prices stem from deals that were negotiated in April and early May, when mortgage rates were lower and demand was a bit stronger.<\/p> \n\u201cCrossing the $400,000 threshold is a reminder of how difficult it is to break into homeownership for many Americans\u2014and rising prices<\/a> of other things is making it even harder,\u201d said Chen Zhao<\/a>, Redfin\u2019s head of economics research. \u201cThere are a few bright spots, though. Price growth has lost some steam over the last month, and prices aren\u2019t 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\u2019s market<\/a> in most of the country. So even though prices are high, in many markets\u2014especially places like Nashville and Austin, which were once red hot\u2014the door is open for buyers to negotiate with sellers, ask for concessions and get the terms they want.\u201d<\/p> \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.<\/p> \nLeading indicators<\/b><\/p>