US Housing Market Faces Challenges as Prices Hit Record Highs

Rising mortgage rates and limited affordability contribute to a decline in existing home sales despite increased inventory.

Existing home sales fell 0.7% in May, marking the third consecutive monthly decline.
Median home prices surged 5.8% year-over-year to a record $419,300, with high prices deterring buyers.
Housing inventory rose 18.5% from last year, reaching the highest level in nearly two years.
Some cities are seeing more affordable home prices despite population growth, providing opportunities for buyers.
The broader economy shows signs of steady growth as inflation pressures ease.