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U.S. Home Prices Hit Record Highs in June, Sales Continue to Slide

The housing market has been rapidly cooling down. This is due in part to the massive uptick in home prices, which have been seen nationwide, especially this past June. The average price of a home in June has reached a record, $416,000. This rise has led to a halt in home sales across the nation.

The numbers

The median sales price of an existing home has climbed up to $416,000 in June, according to the National Association of Realtors, which is a 13.4% increase for the year, which would be the highest yearly increase since these records began in 1999. At the same time, sales of these previously owned homes dropped for the 5th straight month dropping 5.4%, for an annualized rate of 5.12 million, according to the NAR. This is lower than the number of sales recorded in all of 2019 before COVID became widespread in the U.S.

What this means for the economy

A housing slump of this caliber could deal another big blow to the economy, which is already been hobbled by increasing inflation. Growth contracted at the seasonally adjusted rate of 1.6% in the first quarter, according to the Commerce Department, some economists expect growth to record another decline or barely advance in the April to June period. “We have a lot of people that are just sitting on the sidelines waiting to see what happens with interest rates and the overall economy,” said Phil Mount, a real estate agent in Boise, Idaho. “People aren’t buying right now because they’re nervous.” Almost 15% of the home-purchase agreements that were pending in June fell through, the highest since April 2020 when the pandemic disrupted the market.

Wrap up

Now may not be the best time to buy a house as the prices seem to be increasing more and more across the nation with each passing month. Many factors are playing into this, with inflation being the most glaring of them all. Time will tell if there will be a dip in home prices in the years, or hopefully months to come.

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