Key facts
- Existing U.S. home sales declined by 2.4% in June to a seasonally adjusted annual rate of 4.09 million units.
- The median sales price for existing homes reached an all-time high of $440,600 in June, up 1.8% from a year prior.
- Home prices have experienced 36 consecutive months of annual increases.
- First-time homebuyers constituted 33% of sales in June, a decrease from 35% in May.
- The number of unsold homes available at the end of June was 1.56 million, representing a 4.6-month supply.
Sales of previously occupied U.S. homes slowed in June, falling 2.4% from May to a seasonally adjusted annual rate of 4.09 million units, according to the National Association of Realtors. This figure fell short of economists' expectations and continues a trend of sluggish sales seen since 2023, far below the historical norm of 5.2 million.
Despite the decline in sales volume, the median sales price of existing homes rose 1.8% year-over-year to $440,600, marking an all-time high. This marks the 36th consecutive month of annual price increases, contributing to significant affordability challenges for prospective buyers.
Mortgage rates, which averaged between 6.23% and 6.53% for a 30-year fixed loan in April and May, have been influenced by expectations of higher inflation and rising oil prices. While rates remain below last year's levels, they are contributing to the slowdown in transactions.
First-time homebuyers, historically comprising 40% of sales, accounted for only 33% in June, down from 35% in May. The total inventory of unsold homes at the end of June was 1.56 million, a slight increase from the previous year but still below pre-pandemic levels, translating to a 4.6-month supply at the current sales pace.
Regional price trends vary, with the Midwest and Northeast seeing price increases, while the West and South have experienced declines since their 2022 peaks. Median list prices also saw their steepest annual drop since 2017.