Existing Home Prices Hit Record $402,000—But Sales Fall As Housing Market ‘Painfully’ Adjusts To Rising Rates
Existing home sales fell for the fourth-straight month in May in the latest sign that rising rates have stunted sales in the housing market—but prices still hit a record high above $400,000 in May as low levels of housing inventory and supply chain constraints tack on to affordability challenges for prospective home buyers.
Less than 46% of homes for sale nationwide are affordable on a $2,500 monthly budget at a 6% interest rate, down from nearly 62% that would be affordable if rates were still at 3%, Redfin notes.
Existing home sales slid 3.4% from April to a seasonally adjusted annual rate of 5.4 million in May, compared to 5.9 million one year ago, according to data released Tuesday by the National Association of Realtors.
Meanwhile, the median existing-home price was a record $407,600, up nearly 15% from a year ago as prices increased across all regions nationwide—marking 123 consecutive months of year-over-year price gains for the longest streak of increases on record, the NAR said.