SEATTLE, WA — The median U.S. home-sale price reached a record $387,600 during the four weeks ending May 19, according to a new report from Redfin. This marks a 4% increase from the same period last year.
Weekly average mortgage rates dipped slightly to 7.02% from a five-month high of 7.22% at the start of the month. This brought the median monthly housing payment to $2,854, just $20 below April’s all-time high.
High housing costs have impacted pending home sales, which fell 4.2% year over year. This decline is the largest in three months, except for the prior four-week period when sales dropped 4.4%. Despite falling sales, prices continue to rise due to a lack of available homes on the market. New listings are up about 8% year over year, but overall inventory remains lower than usual for the spring season. Many homeowners prefer to stay put rather than sell their homes and take on a new mortgage at current higher rates.
“Move-up buyers feel stuck because they’re ready for their next house, but it just doesn’t make financial sense to sell with current interest rates so high,” said Sam Brinton, a Redfin Premier agent in Salt Lake City, UT. “The homeowners listing right now are often doing so because they need to: One of my clients is selling because of a family emergency, and another couple is selling because they had a baby and simply don’t have enough room. Buyers should take note that many of today’s sellers are motivated; if a home doesn’t have other offers on the table, offer under asking price and/or ask for concessions because many sellers are willing to negotiate.”
The ongoing tight inventory and high prices suggest that potential buyers and sellers will continue to navigate a challenging housing market in the coming months.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.