Chicago Wednesday, May 28, 2025
Home Prices Reach New Heights Despite Sluggish Sales
The median price for existing homes across the U.S. rose to $414,000 in April, marking a record high for the month and the 22nd straight month of year-over-year price growth. However, home sales continue to lag, sitting at only 75% of their pre-pandemic levels, even as the country experiences strong job growth. According to Lawrence Yun, chief economist at the National Association of Realtors, housing demand is building up but remains unmet. He noted that a notable drop in mortgage rates could unlock this growing demand.
Affordability Crisis and Uncertainty Stall the Market
Despite strong interest from potential buyers and a willingness from builders to construct more homes, high costs are standing in the way. Home prices have surged nearly 50% since before the pandemic, while mortgage rates climbed to 6.86% last week, far above the pandemic-era low of 2.65%. Additionally, trade policies from the Trump era have raised construction costs and added uncertainty to the housing market, making it harder for both builders and buyers to plan for the future. As a result, housing construction has slowed, further limiting supply in an already strained market.
