US Home Prices Hit All-Time High in June 2025 Amidst Sales Decline
US Home Prices Hit All-Time High in June 2025 Amidst Sales Decline
Despite a continued slump in overall sales, US home prices surged to an all-time high in June 2025. The median price for an existing home reached $435,300 last month, surpassing the previous record set in June 2024, according to recent data from the National Association of Realtors. This new peak comes even as sales numbers dipped to a nine-month low, decreasing 2.7% from May.
The current market is characterized by a stark divide, with affluent buyers largely driving the price increases. Many of these purchasers leverage significant housing equity, rising wages, and a strong stock market, often making all-cash purchases. Homes priced over $1 million saw a notable 14% increase in sales last month compared to a year prior, highlighting the strength at the market’s high end.
For first-time and middle-income buyers, however, the landscape remains challenging. Elevated mortgage rates, currently averaging 6.74%, coupled with prices that are 48% higher than five years ago, are pricing many out of the market. The ‘lock-in effect’ also discourages existing homeowners with lower interest rates from selling, contributing to limited inventory.
New home sales in June saw a slight uptick from May but remained nearly 7% lower year-over-year. Interestingly, the median price for a new single-family home was $401,800, almost $40,000 less than existing homes. Builders are responding to demand for starter homes by constructing smaller units and offering incentives, with 38% reporting price cuts in July. However, rising construction costs and a drop in new home permits signal potential supply constraints ahead, which could further impact future prices.
Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.