NAR: Existing-Home Sales Fell 2.7% in June; Northeast Sales Dropped 8% Last Month

WASHINGTON—Existing-home sales decreased by 2.7% in June, according to the National Association of Realtors Existing-Home Sales Report released July 23.

Month-over-month sales declined in the Northeast, Midwest and South and rose modestly in the West. Year-over-year, sales fell in the Northeast and West, while rising in the Midwest and South.

“Multiple years of undersupply are driving the record-high home price. Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market,” Yun added. “More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment.”

A 2.7% decrease in total existing-home sales month-over-month to a seasonally adjusted annual rate of 3.93 million.

No change in sales year-over-year.

1.53 million units—Total housing inventory was down 0.6% from May and increased 15.9% from June 2024 (1.32 million).

A 4.7-month supply of unsold inventory, up from 4.6 months in May and 4 months in June 2024.

$435,300—the median existing-home price for all housing types was up 2% from one year ago ($426,900) – a record high for the month of June, and the 24th consecutive month of year-over-year price increases.

A 3% decrease in sales to a seasonally adjusted annual rate of 3.57 million, up 0.6% from June 2024.

$441,500: the median home price in June was up 2% from June 2024.

There was no change in sales, a seasonally adjusted annual rate of 360,000 units, down 5.3% from June 2024.

$374,500: the median price was 0.8% higher from June 2024.

An 8% decrease in sales month-over-month to an annual rate of 460,000, down 4.2% year-over-year.

$543,300: the median price was up 4.2% from June 2024.

A 4% decrease in sales month-over-month to an annual rate of 950,000, up 2.2% year-over-year.

$337,600: the median price was up 3.4% from June 2024.

A 2.2% decrease in sales month-over-month to an annual rate of 1.81 million, up 1.7% year-over-year.

$374,500: the median price was up 0.3% from June 2024.

A 1.4% increase in sales month-over-month with an annual rate of 710,000, down 4.1% year-over-year.

$636,100: the median price was up 1% from June 2024.

6.75%—The average 30-year fixed-rate mortgage as of July 17, according to Freddie Mac, up from 6.72% one week before and down from 6.77% one year ago.

“High mortgage rates are causing home sales to remain stuck at cyclical lows. If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners,” Dr. Yun said.

He continued, “Expanding participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong income growth, healthy inventory, and a record-high number of jobs.”

27 days: The median time on market for properties, unchanged from May, up from 22 days in June 2024.

30% of sales were first-time home buyers, unchanged from May and up from 29% in June 2024.

29% of transactions were cash sales, up from 27% in May and 28% in June 2024.

14% of transactions were individual investors or second-home buyers, down from 17% in May and 16% in June 2024—lowest level since September 2022, due to individual investors retreating from the market.

3% of sales were distressed sales (foreclosures and short sales), unchanged from May and up slightly from 2% in June 2024.