Average price for US homes hits record high in May despite rise in interest rates

But sales have fallen to slowest pace since June 2020, near start of pandemic, and demand for homes still outstrip supply

The average US house price hit an all-time high of over $400,000 in May even as interest rate rises and high prices led to a fourth consecutive month of declining sales.

Existing home sales fell 3.4% last month from April to a seasonally adjusted annual rate of 5.41m, the National Association of Realtors said on Tuesday. Sales fell 8.6% from May last year, hitting a two-year low.