US home prices stay near record high, even as sales drop in June | CNN Business

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US home prices continued to fall in June compared to a year ago -- but that may not be much comfort to home buyers.

The median existing home price was $410,200 last month, just 0.9% less than the all-time high from one year ago of $413,800. It marked the fifth month of year-over-year drops in median home sale prices. Inventory of homes on the market remains historically low, as current homeowners are refusing to sell and hunkering down with their ultra-low mortgage rates that might be half or less of current rates. “There are simply not enough homes for sale,” said Lawrence Yun, NAR chief economist.

But, Yun, points out that always happens, month to month, as a function of seasonal changes in the market. “Median home prices rise in the spring and summer because larger homes are sold during this time as families make moves,” said Yun. The primary reason prices are staying elevated is the historically low inventory. And even though there are fewer buyers in the market, those who are compete for the same handful of homes coming to market.

 

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