Are Home Prices Becoming Too Much for Buyers?

Pending home sales dipped slightly in October as median existing home prices hit a new high, reports CNBC. Although mortgage rates remain low, this slight 1.1% drop in pending home sales could indicate that home prices are becoming too much for homebuyers. The median home price of an existing home hit $313,000. And along with pending home sales, inventory also took a dip in October. The number of homes for sale at the end of the month was 20% lower than October 2019 inventory, and a meager 2.7-month supply.

It is also, therefore, a more recent read on buyer activity because it represents people out shopping during the month and making purchase decisions. Analysts expected a small monthly gain.

“The housing market is still hot, but we may be starting to see rising home prices hurting affordability,” Lawrence Yun, chief economist for the National Association of Realtors, said in a release.

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