For the first time in nearly two years, home prices did not fall in any major U.S. metro area amid a shortage in housing supply.
according to Report from RedfinThe median home sale price rose from a year earlier or remained flat in all 50 major U.S. metro areas during the four weeks ending April 28, the first time that has happened since July 2022.
Redfin noted that lower supply is pushing prices higher. “New listings were up 15% year over year, but still well below typical April levels: There were fewer new listings in April this year than in any year on record except 2023 and 2020.”
The median home sale price reached a record high in April, hitting $383,188, Redfin found, an increase of 4.8% year over year.
Regionally, home prices in Anaheim, California led the way, rising 20% year over year, while prices in West Palm Beach, Florida, rose 13.4%. Sales prices combined with current mortgage rates have pushed average mortgage payments to a record high of $2,890, up nearly 15% from a year ago.
Mortgage rates rose beyond the 7% threshold, with the interest rate on a 30-year fixed-rate mortgage increasing to 7.22% on Thursday, up from 7.17% the week before, according to Freddie Mac. Meanwhile, the Federal Reserve said on Wednesday that it will keep its benchmark interest rate steady, raising expectations that mortgage interest rates are likely to remain steady going forward.
Data from Redfin also showed that the median asking price of a home — what homeowners hope their property will sell for — jumped to a record high of $420,450 for the four weeks ending April 28. This is the largest increase since September 2022.
High costs have added challenges for home buyers amid the spring home buying season. Some agents report that the recent rise in mortgage rates is scaring away buyers and affecting mortgage application activity. But there are still enough buyers to allow prices to remain high.
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