Your Money Minute Home Prices Hit Fresh Record High In May 6/30/25
Jun 30, 2025
Home prices have reached an astonishing new peak, with a median value of $422,800. The discussion dives into market trends and the increase in all-cash transactions, highlighting the challenges faced by first-time buyers. Insights about the dynamics of the real estate sector in May shed light on what this means for potential homeowners and investors alike.
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Record High Home Prices
- Home prices in the U.S. hit a new record high in May, with the median existing home price at $422,800.
- Home prices increased by 1.3% year over year despite homes taking slightly longer to sell.
Cash Sales and Buyer Composition
- About one-third of homes sold in May were paid for entirely in cash, a higher percentage than last year.
- A third of sales were first-time home buyers, which is low compared to the usual rate.
Slower Home Sales Pace
- Homes are selling a bit slower than last year, taking an average of 27 days versus 24 days previously.
- More sellers are listing their homes, resulting in homes lingering longer on the market.