Home prices continued to rise in May, reaching a new high even as fears of tariffs, trade wars, and economic uncertainty swirl through the broader economy.
The median sale price for a home reached an all-time record of $396,500 during the four weeks ending June 15, according to Redfin. This was up 1% from the same time last year.
However, the increase belies a continued softening in the housing market nationwide. While sales prices reached record levels, they're 6% lower than the median asking price of $422,238, the report found, indicating that sellers are having to accept lower bids. This is another signal that buyers are getting the upper-hand in markets across the country as
"Homes are selling for under asking price because there are many more sellers than buyers in today's market," the report said. "That gives buyers the upper hand and often allows them to negotiate prices down, though it's still difficult for many people to afford homes because costs are so high."
Even as home prices rise, their pace is tapering off. Home price increases slowed for the fifth month in a row, according to a separate report from Homes.com. In January, prices rose 3.9% year-on-year, a marked difference from the 1% last month. Even typically stronger markets like ones in the Northeast and Midwest are seeing slowdowns, the report found, with price increases in the top three growing markets falling to between 7.4% and 7.6% in May from between 10.5% and 10.8% in April.
Other indicators have also highlighted a slowdown in the market. Data from the Mortgage Bankers Association showed
It's likely this could continue for some time. Affordability continues to be a concern, the Homes.com report noted. Although mortgage rates have fallen slightly in the past week, they're still elevated to where they were a few years ago,
