Breaking News! Home Prices Hit Record High in June- WSJ
June home sales drop as prices hit a record high
The U.S. housing market shattered records in June, with median home prices soaring to unprecedented levels—even as sales continued their months-long slide. The new high highlights the resilience of American homeowner equity and the widening gulf between the cost of buying and affordability for would-be buyers
A Record Surge
The median existing-home sales price jumped to $435,300 in June, up 2% from a year ago and marking the highest ever recorded for the month, according to the latest National Association of Realtors data. This milestone arrives despite a housing market grappling with sluggish sales activity and cautious buyers.
“The record high median home price highlights how American homeowners’ wealth continues to grow—a benefit of homeownership,” said Lawrence Yun, NAR’s chief economist.
Market Forces: Low Sales, High Equity
While prices set new records, home sales tell a different story. June saw a 2.7% year-over-year drop in existing home sales, matching last year’s historically slow pace. Buyers, challenged by rising mortgage rates, elevated home prices, and tightening affordability, are proceeding cautiously or sitting out altogether.
Inventory is rising: The total number of unsold homes—including those under contract—is up 20% year over year, giving potential buyers more options, but also signaling a cooling in demand.
Cancellations on the rise: Nearly 15% of pending home sales in June were called off, a level not seen since data tracking began in 2017. Many buyers backed out during inspections or due to affordability concerns, particularly in Sun Belt markets like Florida and Texas.
Regional Highlights
While the price trend is national, some metro areas continue to outpace the broader market:
Baltimore region: Median sold price reached $425,000, up 3% over last year—a new high for the area.
Sun Belt cities: Higher contract cancellation rates, fueled by elevated taxes and insurance costs.
Homeowner Wealth Grows—But Challenges Persist
For those who already own homes, the news underlines an extraordinary run-up in household wealth. Over the past five years, the average homeowner’s wealth has grown by $140,900, bolstering the financial security gap between owners and renters.
However, rising prices and higher mortgage rates—hovering between 6.5–7%—continue to erode affordability for first-time and move-up buyers, even as increased inventory and more frequent price reductions signal a moderation in some markets.
What’s Next?
Looking ahead, analysts expect home prices to remain elevated in the near term, with some forecasts predicting a modest decline later this year as inventory increases and buyer leverage grows. Still, the record price mark set in June now serves as both a symbol of homeowners’ strength and the mounting challenge for Americans seeking their place in the housing market.
Median existing-home price: $435,300 in June 2025 (a new all-time high).
Existing home sales: 2.7% year-over-year decline.
Pending sale cancellations: ~15%, the highest for June on record.
The housing market, long the backbone of middle-class wealth, remains a story of contrasts: record riches for owners, headwinds for buyers, and shifting tides ahead.