Median Home Sale Price Hits Record High of $396,500 in the US, But Buyers Pay Less Than Asking Price

The median home sale price in the United States has just hit a record high, according to a recent report from Redfin. The median sale price for the four weeks ending June 15th was $396,500, a 1% increase from a year earlier. However, despite this record-breaking price, buyers are actually paying far less than sellers' median asking price. The data from Redfin shows that the median asking price for homes during the same period was $422,238, meaning that buyers are paying 6% or $26,000 less than sellers hoped they would. This trend is indicative of a housing market where Americans are increasingly being squeezed out of the market due to high mortgage rates and a low inventory of affordable homes. The dream of home ownership, which is a meaningful way to build wealth, is becoming more distant for large swaths of the population. Last year, just 24% of home sales came from first-time homebuyers, down from 50% in 2010. The typical first-time homebuyer's age also hit an all-time high of 38. For those Americans who are trying to get their feet on the first rung of the property ladder, data from Redfin shows that sellers may be willing to be flexible on price, especially as there are now more sellers than buyers in the market. High housing costs and widespread economic uncertainty have hurt demand, and as a result, the onus is on sellers to make sure their homes are in tip-top shape and are reasonably priced. "I'm explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate," said Tulsa-based Redfin agent Kelly Connally. "Pricing is most important, but with fewer buyers than usual out there, sellers should also make sure their home is in excellent condition and be ready to make repairs upon inspection." While buyers can't necessarily expect a discount on their home of choice, there are a few exceptions: Homes in desirable locations that are in perfect condition are still hot and typically sell at or above asking price. In conclusion, the housing market in the United States is facing challenges due to high prices and limited inventory. Sellers need to be strategic in their pricing strategy and ensure their homes are in excellent condition to attract buyers. Meanwhile, buyers may have to be patient and flexible in their search for their dream home.