The U.S. housing market saw a record-breaking rise in home prices this April, with the median home sale price reaching $434,000, a 6% increase from the previous year. Despite a slowdown in the market compared to the pandemic boom, the lack of new listings and high investor activity have continued to drive prices up, making it increasingly challenging for everyday Americans to find affordable homes.
Key Points
- Median home sale price in the U.S. reached $434,000 in April, up 6% year-over-year.
- Total number of homes for sale hit a four-year high, partly due to overpricing.
- 18% of homes for sale in April had a price cut, up from 12% in April 2023.
- San Jose and Rochester had approximately 75% of homes sold above the asking price.
- New listings increased 1.7% month-over-month and 10.8% year-over-year but remain 20% below pre-pandemic levels.
- Home sales were down 1.4% from the previous year.
- Average 30-year fixed mortgage rate was 6.99% in April, up from 6.34% in April 2023.
- Investors bought a record 26.1% of low-priced homes in the first quarter.
- Investors accounted for 18.7% of U.S. home sales, buying $31.7 billion worth of homes.
- Elevated mortgage rates favor investors, with nearly 70% paying in cash.
Sources:
https://www.redfin.com/news/housing-market-tracker-april-2024/
https://www.newsnationnow.com/business/your-money/investors-buying-affordable-homes/