US Home Prices Hit Record High

Published: Saturday, June 21, 2025 at 2:59 pm

US Home Prices Reach New Record High, But Growth Slows

The US housing market continues to grapple with high prices, according to a recent report from real estate brokerage Redfin. The median home-sale price reached a record $396,500 during the four weeks ending June 15th. This represents a 1 percent increase compared to the same period last year.

This increase, while still significant, marks a slowdown in price growth. Earlier this year, the yearly growth rate was approximately 5 percent. This cooling trend reflects ongoing imbalances between housing supply and demand.

The surge in home prices was initially fueled by the COVID-19 pandemic, driven by low mortgage rates and the rise of remote work, which increased demand. While prices remain historically high, the market is showing signs of shifting.

Buyers are gaining more negotiating power. The median sale price is now about 6 percent less than the median asking price, a notable change from the bidding wars of 2021 and 2022. This shift is attributed to an increase in the number of homes for sale, up 14.5 percent from a year ago, and a rise in new listings.

However, demand is softening. Pending sales are down 1.5 percent compared to last year, and mortgage-purchase applications have recently declined. Despite the slowing price growth, the median monthly housing payment remains near record levels, indicating affordability challenges for many potential buyers.

Real estate agents are advising sellers to be strategic with their pricing, as overpriced homes are likely to linger on the market. Homes in desirable locations and in excellent condition are still attracting strong interest.

Redfin forecasts that home-sale prices could begin to decline nationally before the end of the year, given the current market dynamics of soft demand and rising inventory.

BNN's Perspective: The housing market is a complex beast. While the record-high prices are concerning, the slowing growth and increased inventory offer a glimmer of hope for potential buyers. The market's trajectory will depend on how quickly supply catches up with demand and how mortgage rates evolve.

Keywords: US home prices, housing market, Redfin, median home price, home sales, price increase, market slowdown, inventory, demand, mortgage rates, affordability, real estate, home buying, home selling, housing forecast

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