Home Prices Are Higher Than Ever, But Many Sell For Below List Price

U.S. home prices have hit an all-time high, but many homes are selling below their list price.

Key Details: According to data from Redfin, the medium U.S. home sale price rose to $397,954 in June. It is up nearly 5% from a year earlier, and 582 U.S. counties are now considered unaffordable. Meanwhile, another Redfin report says that on average, homes that sold during a four-week span in May and June went for 0.3% below the asking price.

For Context: Affordable housing has become a nationwide problem after years of underbuilding, coupled with a rise in mortgage rates and the cost of construction materials. The higher mortgage rates have also caused a reluctance to sell on the part of homeowners who locked in record-low mortgage rates of 3% or less during the coronavirus pandemic.

How the Media Covered it: USA Today (Lean Left bias) highlighted the data about homes selling below list price and suggested the housing market is improving for buyers. Fox Business (Lean Right bias) noted that mortgage rates may remain elevated in 2024 until the Federal Reserve starts cutting rates, which investors predict may only happen once or twice this year.