Economics

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Home sales are down. So why are prices at an all-time high? (www.npr.org)

submitted 1 week ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Home prices hit an all-time high in June, even as the housing market continued its post-pandemic slump.

The median price for an existing home sold last month was $435,300, besting the previous record, set in June 2024, according to data from the National Association of Realtors. But overall, sales numbers were at a nine-month low, seasonally adjusted. Sales in June decreased 2.7% from a month earlier.

How can prices be so high when the market is so slow?

"Today's housing market is really haves and have-nots," says Jessica Lautz, deputy chief economist at the National Association of Realtors.

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[–] elucubra@sopuli.xyz -3 points 1 week ago (1 children)

Sticky prices probably play a major role.

"Sticky prices" refer to prices that remain fixed or change very slowly despite shifts in supply and demand or changes in the overall price level. This phenomenon is also known as nominal rigidity, and it contrasts with the theoretical expectation of prices adjusting quickly to market conditions. Sticky prices can be upwardly sticky, meaning they are resistant to falling even if market conditions suggest a price decrease." (Gemini)

[–] shalafi@lemmy.world 0 points 1 week ago (1 children)

This fucking place. Downvoting factual information just because the quote is from AI. Thanks OP! Learned a new word today!

[–] aesthelete@lemmy.world 3 points 1 week ago* (last edited 1 week ago)

I downvoted it because it had no explanatory value whatsoever.