- Pending home sales in the U.S. fell for the fourth week in a row.
- Redfin, however, reported the median U.S. home price exceeded $400,000 for the first time.
- Economic uncertainty, high mortgage rates, and inflation contribute to declining home sales.
SALT LAKE CITY — U.S. pending home sales dropped for a fourth straight week as the typical cost reached a record high.
The median sales price for a home in the U.S. is at the highest point ever, according to the Redfin analysis, calling it "the first time the typical American existing home has sold for over $400,000."
For Utah, Redfin lists the median sales price for a home at $528,124, based on May data.
"High housing costs and economic instability are driving would-be buyers away," the online real estate brokerage Redfin declared in a Thursday post detailing the data behind the declining sales.
How high have housing costs risen? Here's some numbers from Redfin, for the four weeks ending June 7 and the year-over-year change:
- Median sales price for a home in the U.S., $400,894, up 1.5%
- Median asking price (seasonally adjusted), $402,664, up 1.3%
- Median monthly mortgage payment (seasonally adjusted), $2,619 at a 6.48% mortgage rate, down 1.6%
The weekly average rate for a 30-year fixed-rate mortgage was even higher this week, rising to 6.52% as of Thursday, according to the Federal Home Loan Mortgage Corporation, better known as Freddie Mac.
The 0.06% fall in pending home sales from the previous week comes amid what Redfin described as widespread economic uncertainty, citing jitters among many American over the Iran war, inflation and a looming Fed rate hike.
Before the U.S. and Israel launched the war against Iran in late February, mortgage rates had dipped below 6% for the first time since 2022, seen as a positive sign for the spring housing market. Instead, the fighting spurred a rapid rise in rates and stalled sales.
Consumer prices, too, have jumped. This week, inflation rose above 4% for the first time in three years. That's well above the Federal Reserve's 2% target, potentially triggering an interest rate increase before the end of the year.
Housing prices are heading up despite demand heading down thanks to supply being tight, according to Redfin, which pointed out the number of homes for sales has stayed essentially flat week over week, while new listings were up 0.4%.
The post also noted that current sale prices reflect deals made in April and early May, when mortgage rates weren't quite so high and more buyers were looking for homes.
"Crossing the $400,000 threshold is a reminder of how difficult it is to break into homeownership for many Americans — and rising prices of other things is making it even harder," Chen Zhao, Redfin's head of economics research, said in the post.
Still, Zhao said there are some bright spots for homebuyers.
"Price growth has lost some steam over the last month, and prices aren't rising nearly as fast as they were last year," she said. "And the high costs of purchasing a home are keeping many buyers out of the market, which has led to a historic buyer's market in most of the country."
Zhao said in many markets, "the door is open for buyers to negotiate with sellers, ask for concessions and get the terms they want."
