- Home prices rose to an all-time high in April, according to the National Association of Realtors.
- The median home price in April was $407,600.
- With prices and interest rates high, Americans are having a hard time finding affordable housing.
Home prices reached a record high in April, according to a new report from the National Association of Realtors (NAR).
The median existing home price rose 5.7% year-on-year to $407,600 in April, continuing pressure on homeowners already facing high interest rates.
This is the 10th consecutive month of year-over-year increases and the highest number ever for April, according to NAR.
Home prices rose even though the total number of existing home sales (4.14 million units) remained relatively flat in April.
“While home sales overall remained largely unchanged, the luxury housing market has seen significant growth due to increased supply on the market,” NAR Chief Economist Lawrence Yun said in a statement.
While there are some bright spots in the market due to lower down payments, housing affordability overall has plummeted since the pandemic due to high mortgage rates and inflated real estate prices caused by a nationwide supply shortage.
This trend has made renting more affordable than buying in most major cities, with landlords emerging as the big winners.
If you’re expecting interest rates to drop right away, you may have to wait a while. Federal Reserve President Christopher Waller said this week that the government needs to wait for “several months” to see signs of cooling inflation before cutting rates.
The Fed had been raising interest rates to combat surging inflation. However, while interest rates remain high, inflation indicators and consumer prices are also at high levels.
