Home prices are up 42% since 2020, but because both rates and borrowing costs have skyrocketed, you need to earn 80% more to comfortably afford a home in today’s market

Home prices hit a new high in June for the second straight month, at $426,900.

Home prices reached a new peak in June for the second consecutive month, highlighting the housing market's growing unaffordability for millions of Americans, according to the Wall Street Journal.

"The spring home-buying season, typically the busiest time of the year for the housing market, has been lackluster this year. Home sales declined in June for the fourth consecutive month. The combination of high prices and elevated mortgage rates has made homeownership less appealing to renters and discouraged current homeowners from moving.

"However, low inventory of homes for sale across much of the country is driving prices higher. The national median existing-home price in June climbed to $426,900, a record in data going back to 1999, representing a 4.1% increase from a year earlier, the National Association of Realtors reported Tuesday. These prices are not adjusted for inflation.

"Although the number of homes on the market has increased in recent months, it remains well below historical norms, which can lead to bidding wars for desirable properties. More than one-third of homes sold in June went for more than their list price, according to real estate brokerage Redfin. Sales of luxury homes rose in June compared to a year earlier, while sales of cheaper homes declined, contributing to the rise in the median price.

"Sales of previously owned homes in June fell 5.4% from the prior month to a seasonally adjusted annual rate of 3.89 million, the NAR said. On an annual basis, existing-home sales, which constitute most of the housing market, also dropped 5.4%.

"'We are seeing more inventory, but we are not seeing increased sales,' said Lawrence Yun, NAR’s chief economist. 'We may be moving away from a sellers’ market toward balance, and perhaps entering a buyers’ market.'"