Redfin Reports Home Prices Hit Another Record High

The median U.S. home sale price hit a record $387,600 during the four weeks ending May 19, marking a 4% increase from a year earlier. That’s according to a new report from Redfin.

Weekly average mortgage rates dipped to 7.02% from a five-month high of 7.22% at the start of the month, bringing the median monthly housing payment to $2,854, roughly $20 shy of April’s all-time high. High housing costs pushed pending home sales down 4.2% year over year, which marks the biggest decline in three months (except the prior four-week period, when sales declined 4.4%).

Redfin blamed prices continuing to rise despite declining sales on the fact that there just aren’t enough homes on the market. New listings are up about 8% YOY, but inventory remains lower than typical spring levels. Many homeowners are staying put because they would rather hold onto their relatively low mortgage rate than move up to a bigger and/or better home.

Months of supply increased by 0.6 points to 3.2. For reference, four to five months of supply is considered balanced, with a lower number indicating the seller’s market conditions. 

Redfin reported 901,194 active listings, a 14.8% increase YOY. 

Metros with the biggest YOY increases were Anaheim, Calif. (20.1%); Detroit, Mich. (16.9%); San Jose, Calif. (12.9%); Oakland, Calif. (12.5%); and West Palm Beach, Fla. (12%). Two Texas metros saw minimal decreases YOY: San Antonio (-1%) and Fort Worth (-0.6%).

Pending sales increased in 10 of the 50 most populous U.S. metros, with California metros claiming the top three spots: San Jose (18.4%) San Francisco (8%) and San Diego (4.3%).

Pending sales saw decreases, however, in metros like West Palm Beach, Fla. (-15.3%) and Atlanta, Ga. (-14.9%).

More details from the report can be found here.