U.S. Home Prices Hit Record High as Sales Slump

The National Association of Realtors reported that the U.S. median sales price for existing homes reached an all-time high of $440,600 in June 2026, marking 36 consecutive months of annual increases. Despite the price surge, existing home sales fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million units, missing economist expectations of approximately 4.2 million. The slump is attributed to a chronic housing shortage and rising mortgage rates, which spiked toward 6.75% following the start of a war between the U.S., Israel, and Iran.

Inventory rose slightly year-over-year to 1.56 million homes, but remains well below pre-pandemic norms of 2 million units. This scarcity, combined with high rates, limited first-time buyers to 33% of June purchases. Redfin noted that market demand is increasingly driven by high-income buyers in luxury markets like San Francisco and the Hamptons. Regional trends diverged, with list prices rising in the Midwest and Northeast but falling in the West and South.

To combat the affordability crisis, the 21st Century Road to Housing Act became law after midnight on Friday. The legislation aims to streamline construction reviews and limit corporate investor ownership of single-family homes. President Donald Trump refused to sign the bill, allowing it to become law without his signature to protest the Senate's failure to pass the SAVE America Act, a separate voting bill sponsored by Senator Mike Lee.