The median price of an existing home increased 5.7% in April from a year ago to $407,600, according to a report released Wednesday by the National Association of Realtors. This marks the fourth monthly increase in a row, as well as sets a record for April prices.
Housing affordability is made up of household incomes, home prices and mortgage rates, and current levels of each show it’s not a good year for potential buyers. Additionally, existing home sales dropped nearly 2% in April to a seasonally adjusted annual rate of 4.14 million, the NAR reported, the second consecutive month they have fallen. The standard mortgage rate topped 7% in April, according to data from Freddie Mac.
However, more homes are being put up for sale, and the share of buyers purchasing a home for the first time bumped up to 33% in April from 32% in March. At the end of April, there were a total of 1.21 million units on the market, an increase of 6% from March and up 16.3% from a year ago.