For the first time in nearly two years, home prices did not fall in any major U.S. metro area amid a housing shortage.
A step Report by RedfinMedian home sales prices in all 50 of America’s largest metro areas rose from a year ago in the four weeks ended April 28, or for the first time since July 2022.
Redfin noted that low supply is driving up prices. “New listings are up 15% year-over-year, but they’re well below typical April levels: There were fewer new listings this April than in 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% year-over-year increase.
Regionally, Anaheim, Calif., led the way with home prices rising 20% year over year, while West Palm Beach, Fla., increased 13.4%. Sales prices combined with current mortgage rates pushed the average mortgage payment up nearly 15% from a year ago to a record $2,890.
Mortgage rates have crossed the 7% threshold, with the rate on a 30-year fixed-rate mortgage rising to 7.22% on Thursday, up from 7.17% the week before for Freddie Mac. Meanwhile, the Federal Reserve on Wednesday said it would keep its benchmark rate steady, boosting the outlook that mortgage rates will remain stable for the foreseeable future.
In the four weeks ending April 28, data from Redfin showed the median price at which homeowners sold their properties rose to $420,450. This is the biggest increase since September 2022.
In the midst of the spring home buying season, rising costs have added to the challenges for homebuyers. Some agents report that the recent increase in mortgage rates is scaring away buyers and affecting mortgage application activity. But there are still enough buyers to allow prices to rise.
