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US home prices just hit a record high. Americans are still buying

·1 min

Homes in America are at the highest prices ever recorded, according to a report. The median price of a previously owned US home increased for the eleventh consecutive month in May, rising 5.8% from a year ago to reach a new high of $419,300. The rising home prices are creating a divide between property owners and first-time buyers. Despite improvements in recent months, there is still a shortage of homes in the market to meet the demand. The affordability of housing remains a challenge, with high mortgage rates and the need for a substantial down payment. However, sales of previously owned homes have increased from the low levels seen in the fall. In May, sales dipped by 0.7% to a seasonally adjusted annual rate of 4.11 million.