Home price data from the past quarter shows a 2.1% decline in median sale prices across the top 50 metro areas. Transaction volume dropped 8% compared to the same period last year, marking the slowest spring market since 2019.
Markets in the Sun Belt saw the steepest declines, with Phoenix and Tampa posting 4.5% and 3.8% price drops respectively. The Northeast, by contrast, held relatively steady, with Boston prices unchanged month-over-month.
The average 30-year fixed mortgage rate crept up to 6.85%, pushing monthly payments on a median-priced home beyond $2,400 for the first time in five months. Rising rates effectively shaved 11% off buyer purchasing power since January.
Inventory rose to a 4.2-month supply, up from 3.1 months a year ago, giving buyers more negotiating room. Homes are sitting on the market for a median of 38 days, seven days longer than last spring, as sellers increasingly offer price cuts.
Economists caution that the rate environment may persist through the second half of the year, with the Federal Reserve signaling no near-term cuts. Some analysts, however, argue that pent-up demand could reawaken the market if rates stabilize.