Why Are Home Prices Soaring Despite Falling Sales?

Despite a slowdown in home sales and high mortgage rates, home prices hit an all-time high in June, driven by high-end sales and homeowners leveraging housing equity, while first-time buyers face affordability challenges. The market is skewed towards wealthier buyers, with new homes becoming more affordable than existing ones due to smaller sizes and price cuts, but overall supply constraints and high construction costs may keep prices elevated.