That’s how much the median existing home sold for in May—a new record and evidence that the slowdown in the housing market has yet to restrain soaring prices.
The median home went for more than $400,000 for the first time in data going back to 1999, up from $395,500 in April and a 14.8% increase over the year before, the National Association of Realtors (NAR) said in a report Tuesday. Home prices are continuing to rise rapidly despite a recent spike in mortgage rates that’s driven borrowing costs skyward, pricing would-be buyers out of the market and causing fewer homes to be sold.
However, with for-sale listings still depleted to near historic-low levels, the market will have to cool off a lot more before supply and demand rebalance to the point where buyers see any relief on pricing, Lawrence Yun, chief economist for the NAR, said in a commentary.
“Homes priced appropriately are selling quickly and inventory levels still need to rise substantially—almost doubling—to cool home price appreciation and provide more options for home buyers,” Yun said.
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