Home prices in major U.S. metropolitan areas have not fallen for the first time in about two years due to a housing shortage.
Redfin reports that median home sales prices increased or stayed the same year-over-year in all 50 major U.S. metropolitan areas during the four weeks ending April 28, the first time since July 2022.
Redfin said a lack of supply is causing prices to rise. “Although the number of new listings has increased 15% year-on-year, it is still well below the level seen in April of previous years. It was less than the year.”
The median home sales price hit a record high in April, reaching $383,188, up 4.8% from a year ago, according to Redfin research.
By region, Anaheim, California, topped the list with a 20% year-over-year increase in home prices, followed by West Palm Beach, Florida, which rose 13.4%. The combination of sales price and current mortgage rates pushed the median mortgage payment to an all-time high of $2,890, an increase of nearly 15% from a year ago.
Mortgage rates have surpassed the 7% threshold, with rates on 30-year fixed-rate mortgages rising to 7.22% on Thursday from 7.17% the previous week, according to Freddie Mac. Meanwhile, the US Federal Reserve (Fed) announced on Wednesday that it was leaving its benchmark interest rate unchanged, raising expectations that mortgage rates are likely to remain stable going forward.
Redfin data also shows that the median asking price for homes (the price homeowners hope their properties will sell for) jumped to a record $420,450 in the four weeks ending April 28. showed that. This is the largest increase since September 2022.
Rising costs are an added challenge for homebuyers during the spring home buying season. Some agents report that recent increases in mortgage rates are scaring off buyers and impacting mortgage application activity. However, there are still enough buyers left to allow prices to remain elevated.
