Average House Price In US Reaches Record High Of $419,300 As Sales Of Existing Homes Weaken

Average House Price In US Reaches Record High Of $419,300 As Sales Of Existing Homes Weaken

House prices in the US rose to a record high, and May saw a decline in sales of previously owned homes for the third consecutive month, according to the National Association of Realtors (NAR)

Vikrant DurgaleUpdated: Saturday, June 22, 2024, 12:58 PM IST
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House prices in the US rose to a record high |

House prices in the US rose to a record high, and May saw a decline in sales of previously owned homes for the third consecutive month, according to the National Association of Realtors (NAR).

According to the NAR, existing home sales fell 0.7 per cent in May compared to April, hitting an annualized rate of 4.11 million, the lowest since January. They had decreased by 2.8 per cent from the previous year.

Average US house price

According to the group, the median price reached an all-time high of USD 419,300, up 5.8 per cent from 2023. With this increase, prices have increased year over year for 11 months in a row.

Rising prices are "creating a wider divide between those who own properties and those who wish to be first-time buyers," according to NAR Chief Economist Lawrence Yun.

Many prospective buyers have been discouraged by the high cost of mortgages, which have been maintained by the Federal Reserve's interest rate hikes to control inflation. Yun further stated that "the mortgage payment for a typical home today is more than double that of homes purchased before 2020."

Realtor confidence index

Properties typically stayed on the market for 24 days in May, down from 26 days in April but up from 18 days in May 2023, according to the monthly 'Realtor Confidence Index'.

31 per cent of sales in May were made by first-time home buyers, which is a decrease from 33 per cent in April but a gradual increase from 28 per cent in May 2023. According to NAR's November 2023 Profile of Home Buyers and Sellers, 32 per cent of buyers were first-time homeowners on an annual basis.

In May, 28 per cent of transactions were made entirely with cash, which is an increase from 25 per cent in April and remains constant from last year.

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