Home prices just hit a record high. Here are 4 things to know about housing
How have elevated mortgage rates affected home buyers and sellers?
Elevated mortgage rates have made it more expensive to buy a house, pushing some would-be buyers out of the market. Additionally, many people who already own homes are reluctant to sell, as that would mean giving up their current, cheaper mortgage. This has resulted in fewer homes being sold and increased prices for the limited homes available on the market.
What is the median price of homes sold in May?
The median price of homes sold in May was $419,300, an all-time record. This increase in price is due to the lack of homes for sale, as the more affordable end of the market has largely dried up, causing people to be priced out of the home-buying market.
What caused home prices to hit a record high last month?
Home prices hit a record high last month due to elevated mortgage rates, which kept many would-be buyers and sellers on the sidelines3. The lack of homes for sale drove up prices for the limited number of homes on the market. Additionally, the more affordable end of the market, including starter homes, has largely dried up, causing average home prices to climb4.