(NewsNation) — The national median sales price of U.S. homes hit a record high of $435,000 in June, according to the latest numbers from the National Association of Realtors.
Up 2% from a year ago, this rise marks the 24th consecutive month of growth in home sales prices. The report notes that this spike highlights how the wealth of American homeowners is continuing to expand, with the average homeowner’s wealth having grown $140,900 over the past five years. But while the report was positive for homeowners, buyers were met with a 2.7% drop in existing home sales.
Lawrence Yun is the chief economist for the National Association of Realtors. According to Yun, years of low inventory are driving the record-high home prices but are putting first-time buyers under further strain, especially as new home construction continues to lag.
“This is holding back first-time home buyers from entering the market.” Yun said. “More supply is needed to increase the share of first-time homebuyers in the coming years, even though some markets appear to have a temporary oversupply at the moment.”
According to Yun, a drop in mortgage rates in the second half of the year could help both buyers and homeowners.
“If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners,” Yun said.
As of April, the U.S. housing market had nearly 500,000 more sellers than buyers — the largest seller surplus on record, according to a Redfin estimate.
