Rising US home prices are heightening the housing affordability crisis for Americans, especially first-time buyers.
The median price of a previously owned home in the US grew 5.7% from a year earlier to $407,600, according to data from the National Association of Realtors released Wednesday. That was the fourth consecutive monthly increase and was a record for April prices.
NAR also reported that existing home sales, which make up the vast majority of transactions, fell 1.9% in April to a seasonally adjusted annual rate of 4.14 million. Sales fell in April for the second month in a row as mortgage rates surged past 7%.
One shred of good news for housing in America, however, is that more homes are continuing to come to market.
“The upper-end market is experiencing a sizable gain due to more supply coming onto the market,” said Lawrence Yun, NAR’s chief economist, in a release.
He added that “home prices reaching a record high for the month of April is very good news for homeowners.”
This story is developing and will be updated.
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