The average home price in the US surpasses $400K for the first time as buyer demand falls
The quintessential American existing home has sold for more than $400,000 for the first time, even as pending sales fall for the fourth week in a row and economic uncertainty keeps buyers on the sidelines.
The real estate market is reaching record highs in home sales prices as buyers continue to pull back.
The average sales price of a U.S. home reached a record $400,894 during the four weeks ending June 7, the first time a typical U.S. existing home sold for more than $400,000. according to a Redfin analysis.
This milestone comes as buyer demand continues to retreat. Pending home sales fell 0.6 percent from a week earlier, the fourth straight week of declines, as high home costs and economic uncertainty push potential buyers to the sidelines.
Chen Zhao
Prices are rising despite declining demand, because new supply remains limited. Potential sellers are holding back as buyer activity declines, keeping inventory tight enough to support price growth. The total number of homes for sale remained stable week after week, while the number of new homes rose only 0.4 percent.
Monthly payments reflect the pressure. The average monthly payment was $2,619 – just $8 less than an 11-month high in late May – while mortgage rates remained around 6 percent.
“Crossing the $400,000 threshold is a reminder of how difficult it is for many Americans to break into homeownership,” said Chen Zhao, Redfin’s chief economics officer. “Price growth has lost some momentum over the past month… and the high cost of buying a home is keeping many buyers out of the market, leading to a historic buyer’s market in most of the country.”
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