22 Jun Home Prices hit another record high in May

According to the National Association of Realtors, U.S. home prices hit another record high in May.

Specifically, the report said, “Median existing home prices across all housing types hit a record high of $350,300 in May, up 23.6% from the year before, Home prices rose across all U.S. regions as the new high marked 111 consecutive months of annual price gains since March 2012.”

However, home sales dropped for the 4th consecutive month in May with sales down .9% from the previous month,

Lawrence Yun, Chief Economist for N,A,R, explains, “Home sales fell moderately in May and are now approaching pre-pandemic activity. Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market.”

He is optimistic about the trajectory of the market. He added, “The market’s outlook, however, is encouraging. Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes.”