For the first time in nearly two years, home prices aren’t falling in any major metro area in the US amid a shortage in housing supply.
According to a report by Redfin, the median home-sale price rose from a year earlier or stayed flat in all 50 of the biggest US metro areas during the four weeks ending April 28, the first time that has happened since July 2022.
Redfin noted that low supply is driving prices higher. “New listings are up 15% year over year, but they’re still well below typical April levels: There were fewer new listings this April than any year on record except 2023 and 2020.”
The median home sale price hit a record in April, reaching $383,188, Redfin found, a 4.8% increase year-over-year.
Regionally, Anaheim, Calif., home prices took the lead, rising 20% year over year, while West Palm Beach, Fla., gained 13.4%. Sale prices combined with current mortgage rates pushed the median mortgage payment to 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, up from 7.17% the week prior, per Freddie Mac. Meanwhile, the Federal Reserve said Wednesday it is holding its benchmark rate steady, heightening the outlook that mortgage rates are likely to hold steady for the future.
Data from Redfin also showed that the median asking price for a home — what homeowners hope their property will sell for — jumped to a record $420,450 for the four weeks ended April 28. Thats the biggest increase since Sept. 2022.
The elevated costs have added challenges to homebuyers amid 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. But there still remains enough buyers allowing for prices to remain elevated.
