In April, US house prices continued to rise, worsening the affordability issues for novice property owners.
The average price for a used house in the United States increased by 5.7% compared to the previous year, reaching $407,600, as per data from the National Association of Realtors (NAR) released on Wednesday. This marks the fourth consecutive monthly rise and sets a new record for prices in April.
Moreover, sales of existing homes, accounting for the great majority of transactions, dipped by 1.9% in April to a seasonally adjusted annualized rate of 4.14 million. For the second month running, sales declined due to rising mortgage rates topping 7%.
However, there's a glimmer of hope for the American housing market: more properties are entering the market.
"The high-end market is witnessing a significant boost because of increased supply," commented Lawrence Yun, NAR's chief economist, in a statement. "Home prices reaching a record high for the month of April is fantastic news for homeowners," he added.
The story is still unfolding and will be updated.
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Businesses in the real estate sector, particularly those specializing in home construction, may struggle due to escalating material costs and labor shortages. Increasingly, potential homebuyers are looking towards prefabricated homes as a more affordable alternative, helping to alleviate some of the business challenges in this market.
Source: edition.cnn.com
