Home prices hit an all-time high, even as sales continue to slow

Home prices hit a new all-time high in June, even as home sales declined for the fifth straight month as a lack of affordability continues to push buyers out of the market.

The median home price was $416,000 last month, up 13.4% from one year ago, according to a report from the National Association of Realtors. It marks more than a decade of year-over-year monthly price gains.

Sales of existing homes -- which include single-family homes, townhomes, condominiums and co-ops -- were down 5.4% in June from May and 14.2% from a year ago. June saw the weakest sales figure since June 2020, which was artificially low due to the pandemic.

"Falling housing affordability continues to take a toll on potential homebuyers," said Lawrence Yun, NAR's chief economist. "Both mortgage rates and home prices have risen too sharply in a short span of time."

Inventory, which had been tight, saw its first year-over-year turnaround in three years. The number of homes available for sale at the end of June was up 9.6% from May and 2.4% from a year ago.

"Finally, there are more homes on the market," said Yun. "Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers."