The median U.S. home-sale price climbed to a record $408,776 in June, rising 2.2% year over year, as existing-home sales reached their highest level in more than three years, according to Redfin.
Existing-home sales increased 0.1% from May to a seasonally adjusted annual rate of 4.4 million, the strongest pace since November 2022 and up 4.2% from a year earlier. Pending home sales also rose 0.5% month over month and 4.5% annually, marking their second-highest level since 2023.
Redfin attributed much of the market's strength to demand from affluent buyers, particularly in San Francisco and West Palm Beach, Fla., where luxury home purchases pushed prices and sales higher.
San Francisco posted the largest year-over-year price increase among the nation's 50 largest metros at 9.2%, followed by Pittsburgh (9.1%) and West Palm Beach (8.6%). Closed home sales rose 23.8% in West Palm Beach and 23.1% in San Francisco, while pending sales increased 16.4% and 13%, respectively.
"High-end buyers are driving demand and prices in much of the country," said Chen Zhao, Redfin's head of economics research. "Many of the house hunters who are buying homes are the ones who can afford today's high prices and elevated mortgage rates without busting their budget."
Zhao said affluent buyers remain active despite elevated borrowing costs, while many first-time and move-up buyers continue to struggle with affordability.
The average 30-year fixed mortgage rate was 6.49% in June, up slightly from May. Redfin said higher financing costs, along with economic uncertainty surrounding inflation and geopolitical events, continued to sideline some prospective buyers.
Despite the record median sale price, Redfin noted that home-price appreciation has moderated. Prices increased 2.2% annually in June, below the 3.5% growth in U.S. wages, suggesting affordability has improved modestly compared with recent years.
Competition also intensified. About 22.2% of homes sold above their original list price in June, the highest share in more than a year on a seasonally adjusted basis.
On the supply side, new listings declined 0.8% month over month to 376,762, their lowest level since December, although they remained essentially flat from a year earlier. Redfin said some homeowners are delaying listings as inventory continues to outpace buyer demand in many markets.
The largest month-over-month declines in new listings occurred in Dallas (-6.5%), Fort Worth (-6.2%) and Jacksonville (-5.5%).
Meanwhile, active listings edged up 0.8% year over year to nearly 1.5 million, representing 3.7 months of supply.
Bottom Line
June's data points to a housing market that is gradually gaining momentum, but activity remains concentrated among higher-income borrowers who can absorb elevated home prices and mortgage rates. Affordability continues to constrain many first-time buyers, even as price growth slows and inventory remains relatively stable.
