Home prices hit new all-time high, deepening affordability woes

By Aarthi Swaminathan

National Association of Realtors' chief economist says record-high home prices are good news for homeowners but bad news for potential buyers

The median price of an existing home hit an all-time high of $440,600 in June 2026.

Home prices hit a new all-time high this summer, even as rate-sensitive buyers pulled back.

The median price for an existing home reached a new high of $440,600 in June, according to data from the National Association of Realtors released on Thursday.

That jump comes even as existing-home sales dropped 2.4% in June from the previous month, falling to a pace of 4.09 million. The data is seasonally adjusted.

Between June 2025 and June 2026, home prices increased by 1.8%, pushing prices of resale homes to new heights.

NAR chief economist Lawrence Yun attributed the rise in home prices to a lack of inventory. "Without consistent gains in inventory, home prices can accelerate," he said in a press release.

In a follow-up call with reporters, Yun said that record-high prices are "good news for existing homeowners, as it is their housing wealth, ... [but] bad news for potential home buyers, especially renters who want to buy their first home."

He also noted that in parts of the country where inventory has been constrained, such as in New Jersey, bidding wars are still happening. Home prices have also been on a tear in San Francisco, where the artificial-intelligence tech boom has spurred wild bidding wars.

The luxury side of the housing market, meanwhile, is still humming along.

Sales of million-dollar-plus homes are moving fast, rising 18% year over year across the country, while sales of homes under $100,000 fell 1.7%, and homes between $100,000 and $250,000 rose 0.9%.

"There's a slight upward tilt due to the upper end due to the fact that the luxury market ... is moving a little better compared to the lower end of the market," Yun told MarketWatch on the call, but he stressed that it's not a big influence.

Ultimately, even though home prices have reached an all-time high, "affordability is better than a year ago, because wage growth is outpacing home price growth," Yun said.

Do you have questions about buying a house that you would like to see covered in MarketWatch? We would like to hear from readers. You can write to us at readerstories@marketwatch.com. A reporter may be in touch to learn more. MarketWatch will not attribute your answers to you by name without your permission.

-Aarthi Swaminathan

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-09-26 1231ET