Home prices in the United States are on the rise, with a recent report from Redfin revealing that for the first time in nearly two years, home prices aren’t falling in any major metro area. The shortage in housing supply is driving prices higher, with the median home-sale price reaching a record $383,188 in April, a 4.8% increase year-over-year.
In the 50 biggest US metro areas, the median home-sale price rose from a year earlier or stayed flat during the four weeks ending April 28. Anaheim, Calif., saw the biggest increase in home prices, rising 20% year over year, while West Palm Beach, Fla., gained 13.4%. The median mortgage payment also hit a record $2,890, up nearly 15% from a year ago.
Mortgage rates have climbed past the 7% threshold, with the rate on the 30-year fixed rate mortgage increasing to 7.22% Thursday, per Freddie Mac. Despite this, the Federal Reserve announced it is holding its benchmark rate steady, suggesting that mortgage rates are likely to remain stable in the future.
The high costs have presented challenges for homebuyers during the spring home-buying season. Some agents are reporting that the recent uptick in mortgage rates is scaring buyers away and impacting mortgage application activity. However, there are still enough buyers in the market to keep prices elevated.
Overall, the housing market in the US is experiencing a shift, with prices on the rise and supply remaining low. As the market continues to evolve, it will be interesting to see how buyers and sellers navigate these changing conditions.
